Google Channel Formed
Once you take a look at the chart below of Google (GOOG), you can see the bearish channel that has built over the last month of lower lows and lower highs. If you recall my post on google’s $455 caution flag you would recall the prediction that three was a charm, and $455 had a low probability of holding up as support. Now the stock is back up in this range, and it faces resistance on the upside.
I would be very catious with taking any positions with Google in this price range. The stock has had a difficult time finding strength, and unless the stock breaks the channel on strong volume to the upside, a buy would not give you the best of odds. If you think shares will fall back under $450 and trade back towards $440, you could play a short position here. If so, a stop placed above today’s intraday high of $463.13 would be effective.
