Trouble in paradise Google is headed back down after getting close to the all time high. After thing past the 15 min. Looks good for a short. You can see with the arrows that this is over priced and headed back down to the 798 level. This is a multi-day trade set up. I don't see this catching on and becoming the floor so get in while you can.
GOOGL
FANGs - Wow. A lot goin on here.Busy chart, so bare with me. Bold call, but the more I look at the FANGs on a combined chart, the more I see an (incomplete) bump and run reversal (BARR) in blue.
A head and shoulders is present within a broadening formation in white, that gives room for the H&S to complete. Support in green, resistance in red.
Down.
GOOGL Will Increase One More Day and Then Fall NASDAQ: GOOGL has been on an incline for about a month. Reaching past its resistance 1 level. Could it reach resistance 2 in the next day, I would not bet on it. There is probably a higher chance that it will fall back to resistance 1 or even further. If not now, than it will eventually rest in the next week around the 745.00 mark. However, with a recent spike since the beginning of July we could see a significant dip in GOOGL to around the support number of 702.89. I would definitely not buy right now, not enough room for GOOGL to grow in the next few days. Go check it out.
TIME TO SEARCH in GOOGLEGOOGLE IS VERY STRONG, SO ANYBODY WANTS TO SHORT EVEN WITH OPTIONS MIGHT NEED TO HAVE IRON HEART AND GOD GIVEN TIME TO SEE THE DECAY OF THIS STOCK. BUT WHEN IT WILL FALL; IT MAY FALL HARDER BUT YOU NEED TO BE ABLE TO SEE THAT IT IS COMING AND IT MAY NOT HAPPEN ANYTIME SOON, SO HAVE patience. If it touches red line then probably good time to go short but it's monthly chart so you need to look in daily chart or weekly chart to pinpoint those zones as this stock is very volatile so you need to have iron fest. Green lines r historical support line so safe to buy but for short term unless it touches the green degree 1 line in relation to FIBONACCI.
Bulls getting bitten by the FANG tradeAn average of the FANG stocks tells an interesting story and serves nicely as a bellwether of market sentiment and investor's appetite for speculation. These stocks on average are trading very high price relative to forward earnings. Recent selling action suggest the market is beginning to doubt that these high flying stocks can live up to the expectations for future growth.
Technically it failed this month to reach the previous highs of last year. It's broken the lower trend line and rapidly approaching the 200 day average.
From here another 5% dropto the lower trend line seems likely
[montly chart] Risk remains for longs $SPY $QQQThe monthly chart allows use to see the struggle that is truly presenting. Bulls are having a difficult time defending this price level and confirming 2012 resistance as support. We can also see that prices are trading above the long term trendline. A test of the "trendline" would violate the current 50% retracement and support additional distribution. This would likely result in lower price discovery and retracement of longer term 50% retracement at $73.19
In the absence of "climatic selling" volume I believe prices will continue lower. Risk remains for any new long entries in my opinion.
Good Luck!