Republishing Google weekly CLONING. As you can see the price pattern prediction 7 months ago worked out nicely. Google has had a nice run last few weeks and momentum could carry price to mid of CLONE 3 near term. If the over all market starts correcting we could see Google retrace to last high or middle of CLONE 2. A deeper correction could see Google retrace to bottom of CLONE 2. Assuming Goggle does not break down totally the next long term CLONE target is around $1000. I normally place a 50% line in CLONE channels especially if they rather large in height.
@StealthTrader, I use this system for divergence, better then just looking at RSI,... getting popular among some TW members
Hi Mike, i noticed reversals tend to happen on the median of the underlining trending channel you draw on the charts, at least you see prices react strongly to it, making a reversal candlesticks when there is important top on chart. Do you see that also? Anyways, this is my point of view on GOOG, the divergence has been overextended, same thing we can actually see on any other index today, they have been bouncing of the EMA21 weekly refusing to play the divergence, denoting of a very strong bull markets but just delaying the inevitable. Without being pessimistic because i like to seek confirmation but this looks unhealthy.
@BEI, yes this happens more often then not, also if a channel or CLONE box is large enough in height you can draw Fibs from top to bottom of CLONE. We have negative divergence now on weekly but we need a candle reversal pattern confirmation and you should check monthly frame for more clues