Google Inc. ($404.540, Internet): Shares of GOOG are trading above trend and near the top of the trading band; in other words, not much has changed in the last few months.The latest development on the chart has been a bit of consolidation. We've seen a series of higher bottoms and now a first lower top, setting the stage for a potential triangle pattern.
1) A move to $392 would represent the first sell signal since the upside break at $324, while
2) an upside breakout at $420 would actually complete a bullish triangle at this point.
The stock is a 5 for 5'er, but weekly momentum has just flipped negative; keep in mind the stock remains much closer to the top of the 10-week trading band ($424) than the middle ($360).
All stocks have the ability to decline; those long this name should consider a hedge upon a sell signal at 392.As I state in the subject header, I agree with this analysis. However, what the analysis fails to take into account is your time frame (only one reason my perceptions of market opportunity differ from most others). That is, yes, I see the reversal -- in fact, I saw it the day it occurred (Monday, 28 November) -- but when you place that reversal, the past two weeks activity, and the activity of the upcoming days and weeks, within the spatial context of the entire pattern for Google/GOOG, what I see is a short term base. So I continue to hold my investment.
And do not forget: Standard & Poor's, some time soon, will add Google/GOOG to its index or indices (the correct spelling of the plural form, never indexes!), which should result in an immediate 'pop' in the share price of ~10% -- the better the market and GOOG trade at the time of inclusion, the greater that pop will be, the worse the market and GOOG trade, the less that pop will be. So yes, higher prices ahead.