670 Reasons that Google Is Not a Buy Yet

Many analysts have been upgrading Google, $GOOG, and raising there price targets to the mid 700′s and more. Back on January 11th I also put out the possibility of Google going to 1,000 based on a technical study. But it did not achieve it (link below). It has had a nice run higher but from the current price action it still has some work to do at these levels before it is a buy again. Take a look. The daily chart below shows the break above descending trend line resistance at 610 and subsequent move higher in a straight line. The next resistance is at 670 and a move

Google, $GOOG, Daily

over that could trigger greatness. Both the bullish Relative Strength Index (RSI) and the positive Moving Average Convergence Divergence (MACD) indicator support it. Moving out to the weekly chart shows the significance of the 670 level as the rising trend line resistance from mid 2008. It is also the neckline of the Inverse Head and Shoulders, now with a few extra shoulders, that would give a price objective of 1035 were it to break now. The rising RSI and MACD crossed

Google, $GOOG, Weekly

positive on this time frame also support further upside, with the only resistance over 670 at 747.24, the previous high. The monthly chart shows the company’s entire life history, and paints an even more bullish picture if it can break that 670 resistance. The first target would be 870 from the break of the ascending triangle, followed by a Measured Move to 1054 from the comparable move higher from November 2008 to the beginning of the consolidation in December 2009. So

Google, $GOOG, Monthly

yes there may be greatness in Google’s future. It may be the next $1,000 stock. But I am more interested in making money off of the move and not having it at risk until it is ready. So I am not interested until it clears 670.

One Last Test for Google

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Dragonfly Caps Blog