A revisit to GOOG …
if you go back some posts you will find a SHORT on GOOG was triend in/around the 922 area based on the classic AB=CD or thunderbolt pattern. It held from May to October and then EXPLODED higher … ouch on that one.
also, if you go back some posts you’ll find the 1080 ish level was next target zone … we went higher than that but now are at another key 1.732 extension (which is a big extension – square root of 3) and it appears to be holding. NOT SURE WHAT IS GOING TO HAPPEN but here are some thoughts:
- MONTHLY historical volume has FALLEN since the IPO. The volume at the bottom of the monthly doesn’t lie … it has steadily gone down.
- the count shown is actually a bullish count. the largest correction w/in GOOG could take it down to 625. it shouldn’t go any lower becasue (4) can’t go below (1)
- the GAP should be targeted initially and, being 75 points wide, should offer MAJOR SUPPORT but, if the old adage rings true, it should get filled, completely. we’ll see about that.
- my contention is if that gap gets closed and broken (they are called windows in the candlestick terminology) then a vacuum into the 600 level doesn’t seem that unlikely?
- a nice, clear wave structure looks like 5 up on the daily are complete.
- note the daily RSI … we do have bearish divergence but we also have the classic M formation and when that neckline of the M gives away, it usually spells a movement upcoming. conversely when we have a W bottom, it’s the breakaway to the top that takes out the neckline and it moves (explodes?) higher.
stay tuned…forecasting a move lower on GOOG (which could be rather sizeable) but ULTIMATELY one which should be bought to make a move UP and THREW these all time highs … could take a while.
questions to me.