Short Term Trading Member Forum

[techcharter]

GOOG Tanks 10%


Since the 2007 high, GOOG has been in what looks like a multi-year flat. WAVE B of the flat most likely completed on October 5th 2012 at $774.38. Since then GOOG sold off in a motive wave (wave 1) to the low on October 10th. very small wave 2 flat looked nearly complete going into today's trading. GOOG was ripe for a multi-day selloff. Then came a leaked earnings report that indicated revenue missed concensus, and wave 3 is in play. If you missed this opportunity to short, don't worry, because GOOG will make it back to the $300 level over the next 2 years. Goog broke its June 2012 trendline support and plunged below the 50 day moving average.


Supporting the e-wave analysis is the long term RSI which is near the overbought area. Volume the last 3 years has been lower than the volume during the 3 year rally into the 2007 top. The short term stochastics were overbought for the last 3 months. The bollinger bands were pinching this week, indicating a big change was about to take place. MACD, RSI and stochastics gave sell signals a few days after the October 10th high. Surprisingly the RSI did not show a negative divergence.


http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=&insttype=Stock&symb=goog&time=13&startdate=1%2F4%2F1999&enddate=10%2F18%2F2012&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=0&maval=9&uf=0&lf=1&lf2=0&lf3=0&type=2&style=320&size=4&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=9&x=29&y=16


http://stockcharts.com/h-sc/ui?s=GOOG&p=D&yr=0&mn=6&dy=0&id=p24130161676


http://charts.insidestocks.com/chart.asp?sym=GOOG&data=Z30&date=051406&den=HIGH&divd=Y&evnt=ADV&grid=Y&jav=ADV&size=D&sky=Y&sly=N&vol=Y&late=Y&ch1=011&arga=&argb=&argc=&ov1=&argd=&arge=&argf=&ch2=&argg=&argh=&argi=&ov2=&argj=&argk=&argl=&code=BSTKIC&org=stk