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.