Google malaise
GOOG falling into that large October gap and barely holding on to the 200 day exponential moving average at 343.50. I have warned for some time about this gap and odds are we will start working on closing it (303.20). Note that sometimes large gaps don't get filled at once, so I have drawn Fib retraces. 50% of gap is 325 and I expect that to be a strong support area. I would nibble at a long there, should 343 support not hold in the coming days and we do get that gap penetration. Bears need to be careful as March option activity suggests that the entire area below 350 is supported by large amounts of puts over calls, thus setting up the stocks for a potential short-squeeze rally.
This entry was posted
on Thursday, March 09, 2006 at 2:08 PM.
