Friday, January 20, 2012

GOOGLE (GOOG) The Charts Saw It Coming

Pretty simple post here. I usually throw out a GOOG post with earnings. The weekly chart gave you the set up for the miss.  IMHO this is the best GOOG chart on the net (but then again it is the only one I have seen).

GOOG Weekly -

At point C there was still a chance (along with the broad markets) that a triangle was forming. Then the wedge (blue) formation took over. That has now played out ABCDE textbook and right at a pink cycle top line. The weekly negative divergences under the rising wedge told you this miss was coming. Amazing how TA does this stuff.

GOOG Daily - Again resistance and the negative divergences (especially MACD) gave you the play. About the only question I have is who leaked what or what happened to cause that spike last week? That ain't right.

IMHO the weekly chart gave you the layup. Now does it fall to LT 375 support? What does that have to say about what's coming for the broader market? Let's wait for AAPL and the FOMC next week before jumping to any conclusions.

GL and GB!

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