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Google Creates Topping Pattern Like 2007—Same Results Again?
07/27/2015 7:00 am EST
Chris Kimble, of Kimble Charting Solutions, takes a technical look at Google and Copper from a historical perspective since they broke key support in 2007 and both fell hard. If they both head sharply south together again, investors might want to pay close attention to the message they could be sending.
Google (GOOG) rallied strongly from 2005 until 2007, gaining over 100% in this short time frame. In 2007, it created a reversal pattern (bearish wick) at (1), which ended up being an important high. After that reversal pattern, Google and the S&P 500 (SPX) were both cut in half.
Of late, Google's strong move higher last week, following their earnings report, pushed it to a long-term resistance line and a Fibonacci 161% extension level at (2). As it was hitting the dual resistance, it created a reversal pattern (bearish wick), similar to what it did back in 2007.
Any other key assets acting they did in 2007?
Doc Copper is often viewed as a leading indicator for the global economy. Below is a long-term update on the price action of Copper.
Copper broke a 4-year support line in 2007 at (1) and fell almost 75% during the financial crisis. Of late, Copper has fallen over 20% in the past couple of months and is breaking a 13-year support line at (2). Is Doc Copper sending a key message about the state of the global economy?
Google and Copper broke key support in 2007 and both fell hard, as did the S&P 500 and markets around the world.
If Google and Copper would happen to head sharply south together, investors might want to pay close attention to the message that they could be sending.
By Chris Kimble, Founder, Kimble Charting Solutions
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