Tuesday, February 5, 2013

GOOG Google Weekly Chart M Top Rising Wedge Overbot Negative Divergence

Google chart does not look good.  Price came up to now print at another higher high but note the drastic negative divergence in place (red lines for the indicators).  Even if price shot to the moon, the indicators would likely not overcome the September-October highs.  There is a two-year rising wedge playing out that is squeezing price.  The price action now forms the second hump for an M top, similar to AAPL topping out last year.

 The daily chart would like to squeeze out another high or two as the negative divergence builds on that chart so there is probably a few days perhaps a week or two then it shoujld be all downhill after that. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.
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4 comments:

  1. MCAPFebruary 5, 2013 at 9:45 AM

    Long way to fall - I'm looking at AMZN and NFLX as well for shorts

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  2. Keystone SpeculatorFebruary 5, 2013 at 10:47 AM

    Yep, AMZN dropped to fill the gap at 260-263. Daily chart indicators are weak and bleak. Amazon weekly chart nasty just like the above GOOG chart. AMZN has been a darling a long time, that will be interesting when it unravels. Very strong distribution selling a week ago, the funds have to be dumping it after enjoying the upside orgy for two years. Joe Bagholder is showing up.

    NFLX was topping but it punches out some more upside juice, it had good news overnight last night. 55 bottom, 130 breakoout line is 75 diff, so 205 target and look at that strong congestion there from Aug-Sept 2011. Also 80/20 rule says 180 goes to 220. Maybe a short at 200-230 for NFLX but with a wild orgy stock like this one sometimes they are best to avoid long or short.

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  3. AnonymousFebruary 5, 2013 at 12:21 PM

    KS,

    I agree with your thoughts on AMZN and NFLX, but does it make a difference to you that GOOG is making ALL time highs?

    ReplyDelete
  4. Keystone SpeculatorFebruary 5, 2013 at 12:50 PM

    In technical analysis, the all-time highs are less important. They do typically signal momo so all-time highs may create additional need for time as price rolls over but the charts are the charts, so the assumption is that all that is known about the ticker is already priced into the chart. GOOG and AMZN are negative set ups indicating rocky weeks ahead, NFLX appears to have some additional juice before it takes a rest.

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