March 23, 2007



The Google weekly is just shown for its 14-day RSI which is in the process of rebounding off its 40 level, an event that has generally been the prelude for a rally.

The daily (click on charts to enlarge) shows us how GOOG rebounded off its 200-day simple moving average and has almost filled the gap caused by the 2/27/2007 global market meltdown (what a difference 3 weeks make). One also notices a bullish dynamic of higher lows and higher highs starting with the 3/5/07 low at 437. Last but far from least, the blue downtrending resistance line has decidedly been broken over the past 2 trading days. All this amounts to a stock that could get near its all-time high above 500 in short order, especially considering its resilience in the face of negative news background (what with the Viacom lawsuit heard around the world and all that).



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