This will be a quick analysis. I did a much larger analysis of where I think the economy is going in my Dow Jones post (link at bottom). This is just an idea to illustrate the tech bubble and why we could have some pretty severe downside if this materializes. This is NOT the log chart, but Google hasn't been around that long, so it's not really necessary to use. Major supports are in green. As you can see, we're forming a pretty large head and shoulders amidst a double-top, which is a pretty strong sell signal. The weekly RSI looks pretty oversold, so we could rally up to the high 1100 area first to form a larger right shoulder before dropping. I guess we'll see. We could easily see a 50% decline from current prices though. If we do get down to the $500 zone, I will re-evaluate to gauge the market at the time.
Setup:
Short Below 1000 - Stop loss above 1100
Close around 920
Reopen Short below 920 to target the low 500 zone.
This is not investment advice, and I am not a qualified financial advisor. This is just a potential setup I'm looking at for fun, and to see how it plays out.
-Victor Cobra