The Google (GOOG) gaps are coming back into view. The stock paused Friday at the March 2006 gap open of 368.62, but should that support break watch for a potential gap close at 341.89. The August bear flag was confirmed and unless GOOG moves back up above 385 rather quickly, there could be trouble ahead. The big pie on the sky for bears is the October 2005 gap close at 303, but they will need to get the stock below 340 for that to come in play. Nevertheless, GOOG is at a critical spot right now. 365/368 needs to hold on Monday. A closing move above 385 negates the bearish scenario. Of note: for the first time ever, the 50 dma has crossed below the 200 dma. Bulls need to come to the rescue and fast.
This entry was posted
on Sunday, August 13, 2006 at 12:10 PM.
