Feb 13

Google Pattern Resembles Double Top

Google's (Nasdaq: GOOG) nosedive off its recent earnings-induced new high at 519.00 extended into yesterday's low at 455.02, which was just above the prior pullback low at 452.34 on 12/21. Although GOOG has bounced a touch today, the fact remains that the Oct-Feb pattern resembles a big "M" formation -- otherwise known as a Double Top. A sustained break of critical support at 455-452 should trigger downside acceleration that projects to 420-415, and then to 400-390. My work is warning me that after the current rest-digestion period after the initial decline from 519 to 455, another serious decline should emerge.
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Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!