Google Inc -GOOGL -Daily -Low Vol Rally back to Key Hidden Level
Here's an interesting chart showing a set up for a low-risk trade: The trade is a sell at the "Key Hidden Level - Earnings" line around the $593 level. Stop loss $602 (less than 2%). Downside $570.
Note how the volume blasted off on the release of earnings (see chart at bottom highlighting the key up day) and then the pullback failed to hold in late July. Those buyers now seem trapped in GOOGL shares and they become natural sellers back at "Breakeven" here around the $593 level. The recent rally is on low volume, which is a negative sign once you break under a previous day's low.
Exit if GOOGL can spend a whole day above the $593 level. Then I'll consider going long too with a $10 stop.
That is the nature of technical trading - flip-flopping based on key price zones, but it has to be done.
The basics: GOOGL earned $13 Billion last year on $60 billion in revenues and is worth $363 Billion as of the close 8/18/2014 - GOOGL has $55 billion in net cash. But stop and think about it - A company worth $363 billion is trading at over 6 times sales, which is roughly what MSFT peaked at in 2000 and still hasn't surpassed it 14 years later. With investing, you have to buy a story before reality happens in order to profit handsomely.
*** The Key Hidden Levels are a subscription based service that allows you to see key supp/res from earnings release. See the package at "marketplace add-ons" in the indicators menu.
Tim 1:31AM EST 8/19/2014 592.70 last (close 8/18/2014)
Note how the volume blasted off on the release of earnings (see chart at bottom highlighting the key up day) and then the pullback failed to hold in late July. Those buyers now seem trapped in GOOGL shares and they become natural sellers back at "Breakeven" here around the $593 level. The recent rally is on low volume, which is a negative sign once you break under a previous day's low.
Exit if GOOGL can spend a whole day above the $593 level. Then I'll consider going long too with a $10 stop.
That is the nature of technical trading - flip-flopping based on key price zones, but it has to be done.
The basics: GOOGL earned $13 Billion last year on $60 billion in revenues and is worth $363 Billion as of the close 8/18/2014 - GOOGL has $55 billion in net cash. But stop and think about it - A company worth $363 billion is trading at over 6 times sales, which is roughly what MSFT peaked at in 2000 and still hasn't surpassed it 14 years later. With investing, you have to buy a story before reality happens in order to profit handsomely.
*** The Key Hidden Levels are a subscription based service that allows you to see key supp/res from earnings release. See the package at "marketplace add-ons" in the indicators menu.
Tim 1:31AM EST 8/19/2014 592.70 last (close 8/18/2014)
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