We're seeing a similar setup in shares of search giant Google (GOOG). Not a similar setup to Amazon's recent rectangle, mind you, but a similar setup to the long-term rounding bottom that broke out at the start of the month. Google's pattern gives you a chance to get in early.
The rounding bottom is a pattern that indicates a gradual transition in control from sellers to buyers. The pattern's name is a pretty good description of how it looks on a chart -- and in Google's case, the pattern is getting close to a breakout above $920 resistance. When it happens, we've got a buy signal in shares.Each of the past few days have given GOOG a print above $920, only to close below or immaterially above it by the end of each session. I'd recommend waiting for a more substantial push off of $920 before considering the break confirmed. After that, it makes sense to keep a protective stop at the 50-day moving average. I also featured Google in last week's "5 Charts to Trade After Bernanke's Comments."
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