GOOG ($760, down $7.64) has been a star performer recently, but I have to throw up a caution flag in this one for a couple of reasons.
GOOG has met major extensions and projections on a WEEKLY chart which means that is is VULNERABLE to a downside correction similar to the one that has been seen in AAPL. Now just because it is vulnerable does not mean it is going to happen, but this is what I’m going to watch in this stock.
On the daily chart the largest recent declines since early June have been anywhere from 27.07 – 37.97. I have projected all these prior declines from the most recent high made on 10/5. As long as price can hold somewhere above here (736.41 area), I will still consider GOOG on the buy side IF I am triggered into a trade against this support.
If this same key support is violated instead, I have to consider that GOOG could be in store for a much deeper downside decline from the recent highs.
Chart #1 shows the “symmetry” projections that I am looking at for possible support.
Chart #2 expands the daily chart so you can see the individual levels within the larger support zone that I’m watching.