A Rare Stumble and a Fall for GOOGL
Tue, Jul 25, 10:11 AM ET, by Corey Rosenbloom
On a day that the broader stock market breaks to another new exciting all-time high, Google (GOOGL) lags behind at the moment with a sharp gap down from $1,000.
Let’s pinpoint this rare stumble and see what levels are important for your trades now:
At the moment, a “Double Top” price pattern formed into the $1,000 per share round number resistance reference level.
Google is yet ANOTHER big name stock that recently BEAT Wall Street earnings estimates but collapsed… another reason we try to ignore fundamentals in favor of the dominance of charts (the technicals).
Nevertheless, price fell from a negative volume divergence (volume declined during the recent rally into $1,000, setting up a caution sign for possible reversal) through July.
There are two focal levels for traders to watch at the moment:
The rising 50 day EMA trades into the $960 per share level (price already gapped beneath the 20 day EMA)
and the Gap and V-Spike Reversal Low near $920 per share.
See if buyers step in currently at the $960 per share level on today’s gap, and if not, look for a fall toward $920 to continue the sideways trading range (a new rectangle pattern forming).
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade
Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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