A Trading Thesis: "Stocks Which Are Strong Tend to Get Stronger"
02/03/2016 7:00 am EST
Corey Rosenbloom of AfraidToTrade.com technically analyzes the stock of this tech goliath that surged to new highs following Monday’s better than expected earnings announcement and recommends continuing to trade into the upside action of strongly trending stocks such as this and why.
Google (GOOGL) broke impulsively higher to a fresh new all time price high today after Monday’s better than expected earnings announcement.
In last week’s post The Bullish Breakout and Uptrend Continues in Google, I highlighted the recent bullish reversal up away from the $700 level above the 20- and 50-day EMA resistance cluster near $750.
The breakout—on higher volume—set in motion the trade and expectation that price would continue traveling toward $800—price achieved the $800 round number uptrend target Tuesday.
Note the prior two breakouts—and price surges—in July and November 2015.
By Corey Rosenbloom, CMT, Trader and Blogger, AfraidToTrade.com