Duru‘s been wanting me to do a chart of Google for a few days now. The last time I talked about it was when it made news highs around $205 on January 18. I was asked if it was a short. Its new highs on relatively weak volume was the one blemish on GOOG’s otherwise bullish picture. I said then that I thought it was a long but that one could try it as a short if it fell back under 200. It did just that the next day and slid all the way back to 176.
Today the chart is really interesting again since the market has had a chance to react to Google’s earnings report. Although the stock closed up over 7% the intraday battle was won by the sellers. This is the kind of thing that can be tough to see on bar charts but is crystal clear on candlestick charts — today’s long dark candle stocks out like a sore thumb. Despite today’s bearish candlestick I’d still have to lean towards the long side on this one, unless it closes under 200 again.
Thanks, Mike! And for those of you interested in an example of why you cannot quickly write GOOG off just yet, take a look at what Apple did after a similar long, bearish candle post-earnings. Given that a whole, uh, “gaggle” of stock is coming out of lock-up in less than two weeks, I suspect we should get resolution faster than there was with Apple. Regardless, the high drama should continue.