GOOG shatters 513...
- Thread starter stock_trad3r
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Quote from SiSePuede!:
One thing I will say about GOOG, buying leap Calls even at $600 wouldn't be a long shot off because it would be very very unsurprising for them to split at this point which would send the stock much higher fast. That's just a guess, but I wouldn't be surprised for a split to be coming.
I doubt google will ever split. If they had plans to slip they probably would have done it a year ago. Schmitt, the CEO, said that google has no plans to spilt the stock during the shareholder meeting a month ago.
However, I wish they would.
600 easily agree
well, i don't know where you get the cup and handle from!!!!!!! unless i'm missing something, there is nothing near a cup and handle.
now, it did break a resistance level with strong volume but it was the lowest volume compared to other tops this year so tomorrow we should be able to confirm if iit holds or drop back below resistance, goodluck.
now, it did break a resistance level with strong volume but it was the lowest volume compared to other tops this year so tomorrow we should be able to confirm if iit holds or drop back below resistance, goodluck.
It looks like one to me. It has a large cup and the smaller handle the extends from the top of the cup.
But the major problem with TA is that it isn't an exact science like physics or mathematics. What I may interpret to be a cup and handle may be completely different to someone else.
But the major problem with TA is that it isn't an exact science like physics or mathematics. What I may interpret to be a cup and handle may be completely different to someone else.
My theories revolve around there existing multiple trend lines on any given chart. There can be thousands of lines of support and resistance on any chart. Some of my charts therefore appear to be a spider-web of trend lines. The basic premise is that when price stops at one point it is hitting up against something.
Even price points some years back are still valid years later. For example, when I connect 201.60 and 216.80 together and extend it to the present time we can plainly see how the price bounced off of that line later on in 2005 and then again in 2006 and then again just recently.
There are many theories behind why trend lines exist and why price bounces off of them or goes through them. All we need to know for this discussion is that they are a key point where price may decide to either pivot or break-out with conviction.
The rounded bottom theory is a valid theory in this discussion as you can see what happened during the late part of 2006 with a similiar rounded bottom.
However, this time around there is a multitude of trend lines that the price has to fight its way through. Also take notice to the volume underneath. Volume has been deterioating over the last two years. The price action has been shrinking.
Price and volume contraction can be a bullish sign as it sometimes leads to expansion. However, we are at a point where volume is needed to break through the top. We have to remember that 1/3 of all trading is conducted with quantative analysis and done automatically by computers (not humans). We need to know where the points of resistance and support lie.
We also need to take notice of two indicators:
1) Bollinger Bands- price is above the top bollinger band
2) RSI indicates overbought.
While the Bollinger Bands can be tricky to trade with as the price can sometimes lie high above the top band for sometime, the RSI is the key to this trade. When the RSI has indicated an overbought condition in the past, then there will be a time in the future where the price will come down and sometimes dramatically. For example, in early 2006 the price was at 475 and then went as low as 337.95.
Therefore, my prediction is that Google will not get through the 520-530 price area and then fall to the 470-480 area. This will not happen immediately, but over the next week or so.
A volatility event will be needed to escape orbit outside of the resistance. Those lines are not imaginary, but something that the price has pivoted off of in the past and will pivot off of in the future.
There is a pocket right now that exists that is allowing the price to spike freely upward as you can see on the chart. There is a ceiling where many trend lines converge together.
Notice the master trend line that has existed since early 2004 which connects 201.60 and 216.80. In 2005, it needed 30 million in volume to cross that line. In 2006, it needed 14 million to smash right through it. Then about 15 million to recross it.
Earlier on in 2007, it took 15 million to cross through multiple sets of lines. Therefore, we will need about 15-20 million to smash through those lines (probably more since we are dealing with so many).
Google needs a large scale volatility event for it to move past those lines. Thats my bet...When and if it does move through those lines, then you will surely see 600.
Even price points some years back are still valid years later. For example, when I connect 201.60 and 216.80 together and extend it to the present time we can plainly see how the price bounced off of that line later on in 2005 and then again in 2006 and then again just recently.
There are many theories behind why trend lines exist and why price bounces off of them or goes through them. All we need to know for this discussion is that they are a key point where price may decide to either pivot or break-out with conviction.
The rounded bottom theory is a valid theory in this discussion as you can see what happened during the late part of 2006 with a similiar rounded bottom.
However, this time around there is a multitude of trend lines that the price has to fight its way through. Also take notice to the volume underneath. Volume has been deterioating over the last two years. The price action has been shrinking.
Price and volume contraction can be a bullish sign as it sometimes leads to expansion. However, we are at a point where volume is needed to break through the top. We have to remember that 1/3 of all trading is conducted with quantative analysis and done automatically by computers (not humans). We need to know where the points of resistance and support lie.
We also need to take notice of two indicators:
1) Bollinger Bands- price is above the top bollinger band
2) RSI indicates overbought.
While the Bollinger Bands can be tricky to trade with as the price can sometimes lie high above the top band for sometime, the RSI is the key to this trade. When the RSI has indicated an overbought condition in the past, then there will be a time in the future where the price will come down and sometimes dramatically. For example, in early 2006 the price was at 475 and then went as low as 337.95.
Therefore, my prediction is that Google will not get through the 520-530 price area and then fall to the 470-480 area. This will not happen immediately, but over the next week or so.
A volatility event will be needed to escape orbit outside of the resistance. Those lines are not imaginary, but something that the price has pivoted off of in the past and will pivot off of in the future.
There is a pocket right now that exists that is allowing the price to spike freely upward as you can see on the chart. There is a ceiling where many trend lines converge together.
Notice the master trend line that has existed since early 2004 which connects 201.60 and 216.80. In 2005, it needed 30 million in volume to cross that line. In 2006, it needed 14 million to smash right through it. Then about 15 million to recross it.
Earlier on in 2007, it took 15 million to cross through multiple sets of lines. Therefore, we will need about 15-20 million to smash through those lines (probably more since we are dealing with so many).
Google needs a large scale volatility event for it to move past those lines. Thats my bet...When and if it does move through those lines, then you will surely see 600.
I would like to note one more thing that is key to this argument. Google consists of 4.05% of the Qs. Its also in several other ETFs as well.
There was a hanging man on the Qs today and the appearance that the price of the Qs hit the trend line.
If the Qs does sell-off (along with other similiar ETFS), then that will place pressure on Google. When ETFs sell off, then what happens to their holdings? The holdings get sold off as well...
There was a hanging man on the Qs today and the appearance that the price of the Qs hit the trend line.
If the Qs does sell-off (along with other similiar ETFS), then that will place pressure on Google. When ETFs sell off, then what happens to their holdings? The holdings get sold off as well...
The ETFs are affected by google & the indicies; not the other way around.
Actually it can go either way.
If contrary volume is light enough on the stock, futures activity can affect the indices and the stock. And there's an arb between the ETF and the futures, although its safe to assume that the ' index manipulators' are likely doing it via futures due to 'lower cost'. But one doesn't merely follow the other. It all is arbed together.