The Technical Trader – Google
Mar 10, 2010 Stock to watch, Stocks On The Move, Technical Analysis, Trading Idea
Google (GOOG) was up 2.9% or $16.26 to $576.45 today, a strong performer in an otherwise flat market. On March 2nd, in a post on entitled “Google Could Be Heading Much Higher” (access here), we recommended the stock based on a technical analysis of the shares. We were looking for the stock to move to $580, with some possible resistance at $560.
With the stock now at $576.45 and the stock up better than thirty-six points since our recommendation, those still holding need to assess the trade.
From a technical analysis standpoint, the stock has performed exactly as one would expect, hitting a triple bottom (pattern formed between November and February) at $520 on February 25 and promptly turning around and closing higher every day but two since then.
As such, we should expect the same might hold true and the stock might soon get checked as astute traders take profits from the current run.
We would hold still to maximize profits, but put in a very tight stop, maybe 5 points below current level and if the stock keeps moving up, adjust stop upward a point for every one point gain in the shares. While the shares might continue their upward march into next week or even beyond, we recommend exiting the trade by the close on Friday. Otherwise If the market is weak on Thursday, exit.
