- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Wednesday, 27 April 2011

GOOG - Descending Wedge

GOOG is one of my picks. I'm not trading this yet but I'm watching to see the next good long or short entry come up. Here it is one the one year 60min chart:
GOOG broke down from the very large rising channel recently, and I drew in the broadening descending wedge when it broke support, though sadly I didn't short it at the time. As you can see it fell to the lower trendline perfectly and reversed there. Targets for this counter-trend bounce are at the strong resistance level in the 551-4 area, and if that is cleared then the upper trendline would be in the 565 - 570 area depending on the time taken to reach it. If the upper trendline breaks then the pattern target would be at the 630 resistance level.

One thing to note on the chart is that the overall setup looks pretty bearish. The 551-4 resistance level could be the neckline for an incredibly ugly H&S pattern indicating to the 460 area. That may well not play out, but I'd be surprised if GOOG was done with downside here. If GOOG can make it back up to the upper wedge trendline at (say) 570, then there could well then be a move down to the wedge support trendline in the high 400s which would be a very nice move indeed. Definitely one to watch.

No comments:

Post a comment