Google - 03/02/2010

On January 4th, the first trading day of this year, Google (GOOG) shares hit a 52 week high of $629.51. The shares then promptly turned around and lost about a hundred points over the next month.

It seems that that correction is now over. The shares maintained strong support at $520 during the decline, hitting that level twice, but never going below it, and consolidating just above that mark over the past month.

Today, with a $10 gain in the shares, which has moved the stock to the $542 level, Google is the largest point gainer among S&P 500 stocks.

If we see an extension of today’s gains and Google shares clear the $545 area the next few trading days, then we could see the stock move much higher to the $580 area, although, we could see resistance at about $560.

If we do see continued overall market strength in coming days, traders may want to look at adding Google to their trading portfolio.

For those doing so, this is not a long term trading idea, as the market may continue to get hit by adverse news, economic or otherwise.