Wednesday, December 14, 2011

GOOG At Top Of Trading Range

GOOG has returned to the top of the range established since the January high and the June low.  After completing a 5 wave impulse at the January high, GOOG has been working on a flat correction that will most likely complete in the early part of next year after a retest of the June low.  At the moment a breakout is possible, and maybe even likely, but it would be prudent to wait for a pullback to support before assuming that it is the real deal.  It would probably be a false breakout.  Negative divergences are forming on the MACD, which may be used for short entry with a target at the low end of the range.  From there the upside target is 750 to 800, which may be seen toward the end of next year, or the early part of 2013.

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