Are You Tuned into Channel Google (GOOG)?
Feb 4th, 2009 | By Charles Delvalle | Category: Chart of the DayIt still bewilders me just exactly how fast Google (GOOG) went from the “Yahoo Wanna-be” to the king of the search engine universe. When it comes to Google shares though, lately they’ve been down and out. But that doesn’t mean you can’t make money.
If you take a look at their chart, you’ll see a nice little chart formation called a trend channel.
A trend channel is nothing more than two trend lines – a resistance and support line – that form a “channel” that any given stocks price trades between.
Google’s trend channel began in late November. Every time Google hit the bottom of its trend channel, shares moved higher. And every time it hit the top of, prices would stall out and move lower.
As you can see, Google is now hitting the top of its trend line. Plus, both the Slow Stochastic indicator (under the chart) and the RSI indicator (above the chart) are showing shares as overbought (meaning sellers should flood the market).
One of the best ways to capitalize on this move is by simply buying a Put option which makes money as share prices drop. The move shouldn’t take more than ten days to complete.
Advertisement
Ballooning crude prices and shifting energy technologies have pushed the world to the brink of a global rush on natural gas. Here are the 3 petro-companies one ace analyst predicts are poised to cash in the most — including one that recent history proves could quickly yield 190-fold gains. Get all the details on these companies, and the maverick who recommends them, right here...
Charles Delvalle is a self-taught market-timing professional and value analyst who's followed and invested in the market for the past ten years. He uses a unique combination of technical and fundamental research to pinpoint rapid profit opportunities with stocks and options.
Charles is also a staunch contrarian and takes pride in finding undervalued sectors and discovering undervalued, cash-rich companies. He frequently mocks government stupidities and points out the "inaccuracies (or lies, take your pick) that government reporting frequently dispels as "truth".
Google (Goog) closed today 2-6-09 at 371.28. Last time I looked that is above 360. Turn off the channel please!