Stock of the day: Google
15 October 2024
In today's stock of the day, let's dive into Google, which is presenting a very promising technical setup. From the chart's perspective, a lot of interesting movements are occurring right now. First and foremost, we see that the price is in an uptrend, supported by the orange uptrend line. While the price temporarily broke below this line, it was a false bearish breakout, which is marked in blue on the chart. This false breakout below both the uptrend line and the horizontal support around $155 quickly reversed, leading to a strong upswing.
Following a stellar second half of September, Google has continued to gain momentum in October. Currently, the price is forming a right shoulder of an inverse head and shoulders pattern, marked with a black rectangle. The left shoulder formed in August, the head in September, and the right shoulder is in development this month.
The key level to watch is the neckline, marked in green. A breakout above this neckline, with the price closing above it, would trigger a major buy signal for Google. This breakout is the base scenario and is considered the most likely outcome. Should it materialize, it will represent a powerful bullish signal, attracting more buyers into the market.