Happy 7th Birthday, Google!
Google/GOOG’s official founding date was 7 September 1998, marking today as its seventh birthday.
In honor of this occasion, the shares broke out above resistance at the 50-day simple moving average (sma). This action, as well as the setup and larger pattern, are similar to early-April 2005. This means
1) The decline was prefatory to a new, intermediate term base (as was expected);
2) The decline and base will be shallow (as was expected); and
3) Could prove brief -- 3 months rather than 6 months. (Either, as was expected.)
In honor of this occasion, the shares broke out above resistance at the 50-day simple moving average (sma). This action, as well as the setup and larger pattern, are similar to early-April 2005. This means
1) The decline was prefatory to a new, intermediate term base (as was expected);
2) The decline and base will be shallow (as was expected); and
3) Could prove brief -- 3 months rather than 6 months. (Either, as was expected.)
[click to enlarge]
Next serious resistance at ~$350, and rising. Do not expect such a move to occur lickety-split, however; this base requires more work before it completes itself.
posted by David M Gordon | 7:57 PM
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