I haven't updated my Google (GOOG) work here in a while.
The last time we looked at it was after a healthy decline was seen after an earnings report. That is when I started running the Fibonacci price relationships on the weekly chart looking for where we might bottom. We saw an initial rally from one of the first support zones that was followed by another low into the next key weekly support decision. Since then we've had a pretty healthy rally and see the upside potential all the way to the $812 area.
Let's take a look at the daily chart next.
Looking at the daily chart, notice that price is above both the 200 and 50 SMAs. Also note that the May 13 ema crossover is also on the side of the bulls.
For more information on the daily moving averages, please refer to this recent article.
This tells me that the highest probability trade setups are still on the buy side in GOOG.
Now, let's take it down to my actual 60-minute setup chart where we can really refine our risk for a trade here.
There are a few things that I like on this 60-minute chart of GOOG. First, we have a price cluster decision that includes symmetry projections. This zone comes in at the $704.99-707.09 area. The second thing is the time symmetry. This is where I've illustrated that the prior declining swings on this chart are rather similar or equal. We had a 28-, 27- and 33-bar decline in the past. The recent low has been made at 27 bars down from the most recent high. The setup is to be a buyer in GOOG as long as price continues to hold above the $704.99-707.09 (give or take a little) when an entry is triggered on a lower time frame chart. For example, you might use a 5-minute chart to use this zone for a daytrade.
For more information please refer to my recent guidelines article.
If this same key support is violated by a decent margin, I will back off the buy side until further notice.