Google Outlook Suggests Further Gains
For most of this year, we have seen some strong trends in a wide variety of market sectors. Tech stocks have participated in this activity but we have seen some discrepancies based on the individual stock stories that can be analyzed. But one trend that looks to be most promising can be found in advertising revenue, which has supported the prospects for a wide variety of companies over the last few months. There is some encouraging data that has emerged in recent months, and this bodes well for bullish traders that are looking to place trades in stocks exposed to the sector.
So for those investors that are looking to buy into blue chip stocks that are poised to benefit from these trends, it is important to have some sense of where the important price levels rest so that new positions can be constructed. In particular, we will look at the implications that factors are likely to create from digital revenue giant Google, Inc. (GOOG, Financial). “Over the last three quarters, we have seen advertising revenue numbers from Google that far surpasses our initial estimates,” said Rick Bartlett, industry strategist at MediaGroup Switzerland. “These are trends that could support not only Google but other ad revenue generators in the months ahead.” Given these factors, it is a good idea to look first at the major player in this sector (Google), and then make extrapolations with regard to how this might impact the rest of the industry.
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Google, Inc. (NASDAQ: GOOG)
Critical Resistance:545
Critical Support: 530
Trading Bias: Growing Bullish
Google, Inc. / GOOG Stock Trading Strategy: Recent declines in GOOG stock look as though they are setting the stage for a reversal. Contrarian traders can look to buy into support near the 530 area.
Short term trends in GOOG stock might look discouraging but when we take the broader fundamental factors into consideration, this activity is starting to look suitable for those looking to establish contrarian long positions in the global advertising giant. To the topside, resistance cannot be found until near the 545 zone, so there is strong potential for solid risk to reward trades with prices at current levels. The Daily RSI indicator is now hovering at mid levels, so there is plenty of room to rise if the underlying stock price can start to generate some positive momentum. As long as prices hold above the support zone at 530, the overall bias is bullish.
