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GOOGle a good short??

Google (GOOG) – A good short soon??

What do I see??

  • Bearish crossover (21EMA crossed 34EMA) on Jan 22. => Bearish??
  • The price backtested the 21EMA/upper limit of Bollinger band and now falling => Bearish??
  • Bollinger band has not be soo tight for very long time=> Very sharp move coming??
  • MACD seems to be turn back. (Not sure how to interpret the crossover). Bearish??
  • VERY LITTLE participation by GOOG in market rally => Bearish??
  • If GOOG goes through SP $525, can it go till SP $400??

Let see what happens !!

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Categories: Finance
  1. February 25, 2010 at 6:01 AM

    Great start, Kamal! Well done in analysis and chart. If this is your first, I bet you will be doing VERY well in very short-time. Everything there that you called for is correct. I will add that MACD when it gives a buy signal by MA cross-over but stays under zero (bearish zone), chances it is a “correction” rather than “bullish” per say. As you see from your chart once MACD crossed above zero back in March 09, It was one way up from there until it dived under the zero line. Notice also the weakening momentum shown in the lower MACD histograms (blue bars) which signals it will rollover and give a sell signal again. When that happens, watch for bullish divergence if any (higher MACD levels with lower prices than current). Also try to use different time-frames (weekly and monthly). Try also to add ADX and RSI to your analysis. Best to you. GV

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