I’m going to say what should be obvious: Apple is not a luxury brand. It’s upscale, sure...
The V-Arc Reversal on Google (GOOG)
05/12/2009 12:01 am EST
Google has formed a very rare and interesting pattern known as a “V-Arc Reversal.” Let’s look at this pattern and what the current daily structure of Google (GOOG) looks like.
Google, along with other some other technology stocks, bottomed in late 2008 and has been rising ever since. Google is currently 65% higher than it was at the November low.
What I wanted to highlight was the arc pattern (officially a V-Arc) that has formed off the March 2009 lows. Look closely to see the slide down into the $290 lows and then the subsequent, almost equal arc, rise off this level to the current $410 highs. It’s an impressive pattern showing remarkable symmetry.
If the arc continues, the peak comes in at the $410 or $420 level, so watch those price levels closely. Also, a negative volume divergence has formed since the March lows. With the exception of two large-bar days, the trend of volume has been trailing lower. This is a non-confirmation of higher prices and warns that a retracement is perhaps more likely than further continuation.
Still, the trend is up and the moving averages just flipped into the most bullish orientation possible (as in 20 above the 50, which is above the 200).
I always enjoy highlighting interesting patterns in stock prices, which reflect the “battle” of supply and demand played out on charts.
By Corey Rosenbloom of AfraidToTrade.comCorey will be speaking at the Los Angeles Traders Expo on June 3-6, 2009 in Pasadena. Register to attend free now!
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