Wednesday, May 25, 2005

Google on May 25

The daily chart above depicts my estimates of the boxes in Google (GOOG). Note that I have revised my estimates of their positions compared to those I made in my last post on this subject. Now I think that the box with high at 201.60 and low at 161.31 defines a box 40.29 points in height.

The 1/2 point of the third box in this sequence is 262.04. Google has been acting much better than the market and this morning the reaction from that 1/2 point has dropped GOOG to just a bit below the 1/4 point of the third box near 252. My best guess is that buyers will step in here to move the market up to the 3/4 point at 272 but if I am wrong GOOG will still be a strong buy at the bottom of the third boxe near 242.

I am very bullish on GOOG longer term and in a previous post projected a price target of 376 by the end of 2005.

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