This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Facebook Sympathy Trades From the Tech Sector

Stocks in this article: FBGOOGTRIADBEMSFTSTX

Google

First up is Google (GOOG), a stock that can't escape comparisons with Facebook. The social network is set to unseat Google's spot as the biggest internet IPO in history when its shares finally go public tonight. But Google has some worthwhile action going on in its stock chart. That's why traders should be paying attention to the symmetrical triangle forming in shares.

A symmetrical triangle is a pattern that's formed by two trend lines that are converging at the same rate. Typically, it's a continuation pattern, which means that it's a sideways move that's effectively a pause while traders absorb a previous move in a stock before continuing in the same direction. Since Google's last big directional push was up from its October lows, a continuation would mean more upside for GOOG. The buy signal comes when shares break out above that upper trend line.

>>10 Stocks Poised to Rise in Apple's Wake

Symmetrical triangles are also sometimes called "coils" -- and that's a pretty good way to explain how they behave. That's because as the pattern progresses, Google is getting its volatility squeezed. And since volatility is cyclical, that means that the breakout from a symmetrical triangle is likely to be a fast, volatile move.

Traders should keep an eye on that trend line resistance line if they want an early warning that GOOG is a high probability trade.

As of the most recently reported quarter, Google was one of the top holdings of Steven Cohen's SAC Capital and also shows up in Maverick Capital's portfolio.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs