Technicals Point To Bounce For GOOG

Google has been one of the leaders on the downside during the past three months, having shed 42% from it’s intra day high in November.  However, the sentiment and DeMark indicators show that the stock is due for a bounce. 

GOOG hit a DeMark Sequential 13 count on the daily chart along with tracing out a falling wedge pattern.  Falling wedges often indicate a price compression which lead to an upside reversal. 

Dm_goog_daily_030608

The weekly DeMark Sequential chart is also confirming the daily.  The weekly chart shows the stock sitting on support from late last year while at the same time hitting a sequential 9 count. 

Dm_goog_weekly_030608 

In addition, the weekly chart shows a spike in the put/call ratio (bottom panel of the chart) in the past several weeks.  Similar spikes in the past have lead to decent long side buying opportunities. 

All in all, it looks like GOOG is a prime bounce candidate if the markets can hold together here. 

2 thoughts on “Technicals Point To Bounce For GOOG”

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