Sharon from Colorado asks if Google looks like a good buy.
As always, we do not profess any special insight into the fundamentals of this or any other company. We assume that Sharon (or you) has done the “homework” in finding the stock.
On August 29, 2013 we noted that GOOG was at an important crossroad. The stock bounced successfully and is currently structured to to go higher. It is making higher highs and higher lows on the higher time frame charts. We especially like Wednesday’s big bounce off the tight cluster of moving averages.
We like an entry at or below Friday’s close with an initial protective stop at either (1) or (2). Remember, good position sizing principles require that fewer shares be purchased if you select level (2) as your stop.