Technical Analysis of Financial Markets

Tuesday, July 04, 2006

Google, Inc. (GOOG) - Symmetrical Triange ?


This is a weekly chart of Google since IPO-ing. After peaking in Jan 2006, a 6-month period of consolidation creating a Symmetrical Triangle seems to be forming accompanied by declining volume; – a usual trait in any typical coiling formation. A breakout usually favours the direction of the previous price trend i.e., upwards for this chart. However, be attentive for a possible fakeout (a premature breakout) and a pullback/throwback towards the apex of the triangle. A pullback after a breakout may weaken the formation and may potentially reverse the trend. In a bull market, a Symmetrical Triangle can be expected to average a 38% gain if no pullback/throwback occurs.

3 comments:

Trader-X said...

Interesting - my blog contributor (Tom C.) and I were discussing the weekly chart of GOOG on Friday. I will see if I can get him to post about it with the Fibonacci lines. But, he was turning bullish as it just triggered a few parameters he watched.

Enjoying your blog...

mr. pink said...

Google (GOOG) is triple bottoming please take a good look at a 1 year daily.

1) Further lack of execution at Softee will impair MSFT's multiple and bode well for Google shares, we believe.

2) We maintain $530 price target based on product innovation, managerial execution "streak," and attractive 30-34 x 07 EPS estimate(s). GOOG = aggressive buy on any weakness......

Anonymous said...

Hey Steve, Thanks for analyzing IDCC.. fell off a cliff today.

Goog... I think I'm the only one who is bearish on it. I just don't believe that they are going up after earnings.....

Perhaps the triangle is a reversal?

Insiders have now almost sold everything, multiples are starting to contract in a bear market, and a gap @ 320.

I guess time will tell...thanks for posting the charts...love the blog:)