Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

Two Timeframe Action in Google GOOG at the Key 500 Level

Thu, Jun 16, 1:11 PM ET, by Corey Rosenbloom

Google shares (GOOG) have fallen to a critical “make or break” price support level as seen both on the weekly and daily chart.

Let’s take a look at the two-timeframe action and see what the current chart says about potential opportunities.

Google (GOOG) Weekly:

Cutting right to the chase, the flat 200 week Simple Moving Average (red) rests at $505.30 per share (rounded to $505).

That’s an indicator to watch, but perhaps the more important reference level traders are watching is simpler than that – the “Round Number” at $500 per share (Wednesday’s low).

Volume on the weekly frame is slightly diverging or declining into this level (that means there’s not yet a frantic/panic of selling pressure) and momentum – both on the daily and weekly frame – is positively diverging with price.

Given this, one could logically expect a rally up from this level as buyers defend the $500 level.

Of course, a failure at $500 (a breakdown here) changes the game and fully gives the chart to the bears, opening up a potential ‘feedback loop’ of selling (buyers liquidating and sellers adding to their short positions) which sets up for a play to the prior support at $450 as drawn.

These are your ’simple’ higher timeframe levels to watch in Google.

Let’s turn now to the Daily Chart for its signals and structure:

Looking back, we had a similar “Battle” to hold key support at the $600 per share “round number” region.

After the December 2011 break, we had three ‘tests’ of this level which gave aggressive traders a chance to buy-into support with a tight stop just under the $600 price.

That aggressive strategy worked well in February but not so much when price cleanly broke and closed (not just intraday) under the $600 price in early March.

That was a “sell short” signal on a breakdown … and after some retracements into EMA resistance along the way … we now face a similar test at $500.

Traders – particularly those who swing trade Google with options strategies – have a chance to play a similar “Game of Support” at the $500 level.

Price can’t stay at the $500 pivot forever – it’s either going to inflect upwards for a quick swing trade opportunity… or break down sharply under the $500 support and head towards the likely targets (weekly chart) at $450.

This is the Mark Douglas logic of trading at inflection points and playing the resolution/winning side.

A firm move above $520 tips the odds strongly in favor of the buyers, as that would break the falling 20d EMA. A continuation break above the 50d EMA at $535 is a further bullish trigger signal.

Keep watching the price structure relative to these important levels as it develops – keeping in mind Friday is an Options Expiration event.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey's new book The Complete Trading Course (Wiley Finance) is now available!

blog.afraidtotrade.com


SDI Glossary: "price" Definition
SDI Glossary: "Finance" Definition
SDI Glossary: "Option" Definition
SDI Glossary: "Support" Definition
SDI Glossary: "TA" Definition
SDI Glossary: "Volume" Definition
This Article's Word Cloud:   Corey   GOOG   Google   That   about   above   afraidtotrade   aggressive   back   both   break   breakdown   buyers   chance   chart   daily   diverging   fallen   frame   have   important   into   just   level   levels   opportunity   play   potential   price   says   selling   share   short   signal   similar   stop   structure   support   swing   that   this   timeframe   trade   traders   under   watch   watching   weekly   which   with

| More

Hidden Trading Opportunities from August 20 Consecutive Close Scan
Wed, Aug 20, 6:51 PM ET, by Corey Rosenbloom

Sometimes the simplest scans can provide stock candidates to trade that we otherwise may never ...

Up Up and Away for the US Dollar Breakout
Wed, Aug 20, 3:31 PM ET, by Corey Rosenbloom

With stocks breaking out, it may be a surprise that the US Dollar Index is ...

Studying the Repeat Pattern that Targets New Highs for SP500
Wed, Aug 20, 2:11 PM ET, by Corey Rosenbloom

I’ve been posting frequently about the potential “Repeat Pattern” in the S&P 500 that charts ...

Up Up and Away for Home Depot HD Breakout
Tue, Aug 19, 11:31 AM ET, by Corey Rosenbloom

On better than expected earnings, retail stock Home Depot (HD) gapped higher, breaking to all-time ...

August 18 Breadth and Stock Scan Market Update
Mon, Aug 18, 2:41 PM ET, by Corey Rosenbloom

Our mid-day update takes place on yet another bullish trend day higher as price breaks ...

Intraday Divergence and Reversal Planning for Crude Oil
Mon, Aug 18, 2:11 PM ET, by Corey Rosenbloom

Crude Oil may be forming an intraday reversal pattern – with divergences – off an ...

NASDAQ Breaks to New Highs on Relative Strength
Mon, Aug 18, 12:11 PM ET, by Corey Rosenbloom

If you’re an S&P 500 or Dow Jones only trader, you may be missing the ...

Uncovering a Hidden Value Area for Apple AAPL Shares
Fri, Aug 15, 3:41 PM ET, by Corey Rosenbloom

What are our Color Value Area Charts revealing about a key magnet price area to ...

Interesting Breadth Chart for August 15 Intraday Stock Scan Update
Fri, Aug 15, 2:11 PM ET, by Corey Rosenbloom

We don’t usually have exciting Sector Breadth Charts to show but today is an exception. ...

Planning a Larger Reversal or Another Trap for Corn Traders
Fri, Aug 15, 12:41 PM ET, by Corey Rosenbloom

Even if we don’t trade commodities, it’s helpful to learn educational lessons and plan trades ...

Decision Point into Resistance for the Dow Jones
Fri, Aug 15, 12:11 PM ET, by Corey Rosenbloom

The Dow Jones faces a major decision point into a known resistance cluster – monitor ...

Unique Educational Fundraiser All Day Webinar Event for Toni Hansen Saturday
Thu, Aug 14, 3:41 PM ET, by Corey Rosenbloom

I’m both pleased and humbled to announce an all-day event of educational webinars from top ...

August 14 Trend Day Intraday Update and Stock Scan
Thu, Aug 14, 3:21 PM ET, by Corey Rosenbloom

We have another Trend Day on our hands as price once again gaps higher and ...

SP500 Decided to Break On Through to the Other Side
Thu, Aug 14, 12:31 PM ET, by Corey Rosenbloom

Not to be spooked by a little retracement in the market, the buyers (bulls) decided ...

Is the the Breakout You've Been Waiting for in Coal? KOL
Wed, Aug 13, 2:11 PM ET, by Corey Rosenbloom

I’m seeing increased chatter about Coal stocks and ETF KOL regarding a potential breakout and ...

August 13 Intraday Stock Scan and Market Update
Wed, Aug 13, 1:31 PM ET, by Corey Rosenbloom

We started the day with an up-gap and have seen a Trend Day ever since. ...

Instant Intraday Market Internal and Fibonacci SP500 Update into Key Level
Wed, Aug 13, 12:21 PM ET, by Corey Rosenbloom

Let’s take a quick look at our ongoing intraday Fibonacci Grid along with key Market ...

Introducing the 10 Gappiest Stocks in the SP500
Tue, Aug 12, 3:31 PM ET, by Corey Rosenbloom

What’s a “gappy” stock and once we figure that out, which stocks are the ten ...

Updating Our Market Structure Color Charts for SP500 Dow and NASDAQ
Tue, Aug 12, 10:41 AM ET, by Corey Rosenbloom

Let’s take a quick moment to update our “Market Structure” Color Charts for the Big ...

Plotting Reversal Signals for Stocks Oil and the Dollar
Tue, Aug 12, 10:11 AM ET, by Corey Rosenbloom

A quick look at the intraday charts of the S&P 500, Crude Oil, and the ...

August 11 Daily Update and Stock Scan
Mon, Aug 11, 1:11 PM ET, by Corey Rosenbloom

We started the day with an up-gap and have seen a Trend Day ever since. ...

Plotting and Planning a Breakout in Priceline PCLN
Mon, Aug 11, 12:21 PM ET, by Corey Rosenbloom

High-flying stock Priceline (PCLN) triggered a bullish breakout signal this morning with a thrust above ...

Game Planning the SP500 with a Repeat Pattern
Mon, Aug 11, 12:11 PM ET, by Corey Rosenbloom

I wanted to highlight a “Repeat Pattern” in the S&P 500 that can help us ...

Sector Rotation Update and Charts for August 2014
Thu, Aug 7, 10:11 AM ET, by Corey Rosenbloom

What are Sector Rotation Charts hinting about the hidden strength (or weakness) of the broader ...

Opportunities from Stocks Most Extended from 200d SMA August 2014
Tue, Aug 5, 10:21 AM ET, by Corey Rosenbloom

Which stocks are most over (and under) extended from their 200 day SMA? How can ...

Groupon GRPN Pushing for Breakout Reversal
Mon, Aug 4, 11:41 AM ET, by Corey Rosenbloom

Groupon shares (GRPN) may be setting up a potential breakout and bullish trend reversal trade. ...

Simpler Stocks Webinar on Trading ETFS for Profit and Protection
Fri, Aug 1, 8:31 PM ET, by Corey Rosenbloom

John Carter is launching a new, specific venture for you entitled “Simpler Stocks” as a ...

New Fibonacci Reference Grid and Color Arc Structure Chart for SP500 Dow and NASDAQ
Thu, Jul 31, 1:11 PM ET, by Corey Rosenbloom

With the breakdown under the key “Arc Trendline” Structure pattern in the Dow and S&P ...

Market Finally Falls - a Check on the New SP500 and Dow Jones Levels
Thu, Jul 31, 12:21 PM ET, by Corey Rosenbloom

It’s good when logic trumps irrationality, and price retraces in a stable uptrend instead of ...

Updating the Creeping Correlation in Stocks and Bonds SPY and TLT
Wed, Jul 30, 1:51 PM ET, by Corey Rosenbloom

If you’re not paying close attention, you may be missing the stealthily increasing positive correlation ...

Signs of Life from a Breakout in US Steel X
Wed, Jul 30, 1:11 PM ET, by Corey Rosenbloom

Is it possible that US Steel (X) is finally catching a bid from a breakout ...

Midday Market Update and Stock Scanning for July 29
Tue, Jul 29, 2:31 PM ET, by Corey Rosenbloom

Price provides a choppy Range Day environment for traders ahead of tomorrow’s “Fed Day” announcement. ...

Is PLUG Setting Up Another Breakout Run to the Highs
Tue, Jul 29, 11:31 AM ET, by Corey Rosenbloom

Former high-flyer Plug Power (PLUG) could be setting up another bullish breakout and run for ...

Are You Following this Stellar Parabolic Arc in INTC
Tue, Jul 29, 9:51 AM ET, by Corey Rosenbloom

If you haven’t charted or traded Intel (INTC) in a while, you’re missing an amazing ...

July 28 Monday Midday Market Update and Stock Scan
Mon, Jul 28, 2:11 PM ET, by Corey Rosenbloom

It’s time to take a look at what’s happened this morning, what Breadth is saying, ...

Join John Carter Thursday for a Trading Options Like a Pro Webinar
Sat, Jul 26, 1:31 PM ET, by Corey Rosenbloom

I’m excited to announce an upcoming featured webinar by John Carter on Thursday, July 31st ...

Interesting Arc Pattern Forming Buy Signal in Harley Davidson HOG
Fri, Jul 25, 1:51 PM ET, by Corey Rosenbloom

What fascinating pattern is developing into a key support level for Harley Davidson (HOG) shares? ...

The Divergences are Working July 25 Market Update
Fri, Jul 25, 1:11 PM ET, by Corey Rosenbloom

I’m actually a little surprised that the market is falling like it “should” be doing, ...

SP500 Gasping at New Highs with Cautious Divergences
Thu, Jul 24, 1:21 PM ET, by Corey Rosenbloom

We’re seeing a familiar Hollywood script play out with price chugging to new highs as ...

Breaking Down and Away from the Highs in Electronic Arts EA
Wed, Jul 23, 3:21 PM ET, by Corey Rosenbloom

Electronic Arts (EA) surprised to the upside yesterday on earnings but failed to impress traders ...

July 23 Breakout Impulse Update and Stock Scan
Wed, Jul 23, 2:31 PM ET, by Corey Rosenbloom

Once again we ask the question, “How high can this market go?” Today saw a ...

Try Out Seven Days of Professional Market Analysis This Week
Tue, Jul 22, 5:41 PM ET, by Corey Rosenbloom

If you’ve ever wanted to know what’s behind the pay-wall (membership site) of Elliott Wave ...

July 22 Midday Trend Day Update and Trending Stock Scan
Tue, Jul 22, 1:31 PM ET, by Corey Rosenbloom

How high can this market bounce? Let’s take a look at our new S&P 500 ...

Join Corey Each Tuesday for a Live Morning Market Briefing with TradeStation
Mon, Jul 21, 7:11 PM ET, by Corey Rosenbloom

Start your Tuesday fresh with live market commentary, updates, and analysis from Corey as he ...

July 21 Bounce and Fibonacci Update with Stock Scan
Mon, Jul 21, 1:11 PM ET, by Corey Rosenbloom

With the morning sell-off and current bounce off a key Fibonacci Level, what price targets ...

Focusing on Just the Rallies - an Interesting Pattern Emerges
Fri, Jul 18, 2:40 PM ET, by Corey Rosenbloom

What does price reveal if we focus on “just” the recent rallies? A stealth bullish ...

July 17 Midday Intraday Update and Daily Stock Scan
Thu, Jul 17, 2:43 PM ET, by Corey Rosenbloom

With the geopolitical news affecting markets, traders seem to be adopting a “Sell First, Ask ...

July 16 Stock Scan and Intraday Trading Update
Wed, Jul 16, 2:53 PM ET, by Corey Rosenbloom

The bull trend continues higher today but what levels are important and which stocks are ...

Learn the Five Steps to Spot and Trade Rounded Reversals in a Live Webinar Wednesday
Mon, Jul 14, 5:30 PM ET, by Corey Rosenbloom

Have you ever been stumped by elusive market reversals? Would you like to learn the ...

July 14 Level Watching and Trending Stock Scan Update
Mon, Jul 14, 3:13 PM ET, by Corey Rosenbloom

What should we be watching in today’s market breakout? Let’s start with our “Sector Breadth” ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

Two Timeframe Action in Google GOOG at the Key 500 Level | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.