Google's Struggles Continue

By Dr. Duru written for One-Twenty

February 23, 2007

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Google the company is humming right along while Google the stock continues to struggle. The only reason why I decided to report on GOOG is that the stock posted a clear short-term sell/short signal Thursday. I post the chart below. The stock sprinted intra-day right for the closing low on the day after the last earnings report. The stock quickly sold off - pulled right back to the 50DMA and the middle Bollinger Band. These lines of resistance/support just happened to be converging on 2006's (January) high of $475.11. The candlestick chart now shows the potential for a shooting star pattern just as the stochastics are starting to turn downward. But before we get too dramatic, note that Google remains well within its wide trading range that has lasted since October, 2006.

Google short-term



I am also taking the opportunity to update the table that summarizes GOOG's price action between earnings. You can see that the last cycle was quite unusual as far as the typical pattern goes. The minimum price point came at its latest point ever after earnings. There have only been two other earnings cycles that matched the last one in terms of minimum price before the next earnings date and maximum price before the next earnings date.

GOOGLE Minimum Price Between Earnings

 

 

Earnings Date

Next Earnings Date

Min Closing Price ($)

Date for Minimum Price

Days After Earnings

Days Before Next Earnings

24-Oct-04

01-Feb-05

165.10

22-Nov-04

29

71

01-Feb-05

21-Apr-05

174.99

14-Mar-05

41

38

21-Apr-05

21-Jul-05

215.81

22-Apr-05

1

90

21-Jul-05

20-Oct-05

274.01

22-Aug-05

32

59

20-Oct-05

31-Jan-06

339.90

21-Oct-05

1

102

31-Jan-06

20-Apr-06

337.06

13-Mar-06

41

38

20-Apr-06

20-Jul-06

370.02

19-May-06

29

62

20-Jul-06

19-Oct-06

367.23

02-Aug-06

13

78

19-Oct-06

31-Jan-07

455.58

22-Dec-06

64

40

31-Jan-07

02-May-07

458.29

12-Feb-07

12

79

 

 

 

 

 

 

 

 

 

 

 

 

GOOGLE Maximum Closing Price Between Earnings

 

 

Earnings Date

Next Earnings Date

Max Closing Price ($)

Date for Maximum Price

Days After Earnings

Days Before Next Earnings

24-Oct-04

01-Feb-05

203.90

18-Jan-05

86

14

01-Feb-05

21-Apr-05

210.86

03-Feb-05

2

77

21-Apr-05

21-Jul-05

313.94

21-Jul-05

91

0

21-Jul-05

20-Oct-05

318.68

03-Oct-05

74

17

20-Oct-05

31-Jan-06

471.63

11-Jan-06

83

20

31-Jan-06

20-Apr-06

416.38

10-Apr-06

69

10

20-Apr-06

20-Jul-06

440.50

24-Apr-06

4

87

20-Jul-06

19-Oct-06

429.00

09-Oct-06

81

10

19-Oct-06

31-Jan-07

509.65

21-Nov-06

33

71

31-Jan-07

02-May-07

481.75

01-Feb-07

1

90

 

 

 

 

 

 

*Earnings repored AFTER the close

 

 

 

 

Be careful out there!

DrDuru, 2007