GOOGLE INC. (NASDAQ: GOOG) ANALYSIS AND TRADING PLANWelcome to a detailed analysis of Google Inc. (NASDAQ: GOOG). Using advanced analytical tools, including the proprietary TheWaved™ platform, this report dissects recent market behavior and provides actionable insights for traders and investors. Let’s explore the technical and fundamental dynamics of the stock and forecast future price movements with key support and resistance zones.
Overview of Current Market Position
Ticker: NASDAQ-GOOG
Current Price: $193.52
52-Week High: $202.88 (28 days ago)
52-Week Low: $83.45 (803 days ago)
Key Indicators:
RSI (14): 54.92 (neutral)
MFI (60): 41.67 (indicating low buying pressure)
Moving Averages (Daily):
MA50: $183.31
MA100: $173.39
MA200: $172.54
Technical Analysis
Support Levels:
187.16 | 185.08 | 181.41 | 176.09 | 173.53
Resistance Levels:
202.88 | 197.62 | 194.55
Moving Averages Insight:
The stock trades slightly below the MA50 and MA100 on the daily chart, indicating a potential bearish short-term outlook. However, the long-term trend remains intact as the price remains above MA200.
VSA Patterns:
Recent trading sessions highlighted critical Volume Spread Analysis (VSA) patterns:
Sell Volumes Max (2025-01-13 14:00 UTC): Increased sell volumes pushed prices down by 4.42%.
VSA Buy Pattern 3 (2025-01-13 10:00 UTC): Signals potential for a rebound after testing lower supports.
Trendline and Channel Analysis:
GOOG’s price action is constrained within an ascending channel since October 2024. The lower boundary aligns with the $188.00 support zone, while the upper resistance lies near $202.00.
Price Action Insight:
The recent lower highs and consistent rejection at $194.71 suggest a strong overhead supply zone. A break and close above $195.00 will be a decisive bullish trigger.
Key Oscillators:
RSI indicates no overbought/oversold condition, leaving room for directional moves.
Stochastic cross above 50 strengthens the probability of an upward trajectory.
Fundamental Analysis
Google continues to show robust performance driven by its advertising and cloud businesses. Recent developments include:
Q4 Earnings are expected to show a revenue growth of 11% YOY, boosted by robust ad demand and cloud service expansion.
Strong financial metrics: Cash reserves of $130 billion with minimal debt.
AI innovations: Google’s advancements in AI-based ad targeting offer a competitive edge over rivals.
Market sentiment: Increasing institutional accumulation as hedge funds position for long-term growth.
Forecast and Trading Plan
Short-Term Projection:
Price action indicates consolidation within $188.00-$195.00. Traders should monitor the $195.00 breakout level closely.
Medium-Term Projection:
Given the strength in fundamentals and supportive technicals, we anticipate an upward breakout, testing $202.88.
Long-Term Projection:
Once the stock decisively clears $202.88, a rally towards $215.00-$220.00 could unfold, aligning with the next Fibonacci extensions.
Trade Levels:
Entry: Buy at $188.00-$189.50 after confirmation of support.
Stop-Loss: Place at $185.00.
Take-Profit Targets:
Target 1: $195.00
Target 2: $202.88
Target 3: $215.00
Bearish Scenario:
A breakdown below $185.00 could accelerate selling pressure towards $176.00. In this scenario, adopt a defensive approach or short-term bearish bias.
Risk Management:
Maintain a risk-reward ratio of at least 1:3. Leverage smaller position sizes when trading near key support or resistance levels.
Conclusion
The technical and fundamental landscape for GOOG appears balanced, with bullish potential outweighing downside risks. Short-term traders can capitalize on the current consolidation phase, while long-term investors may find value in accumulating positions near support zones. Using TheWaved™’s advanced analytics, we’ll provide real-time updates as price action unfolds.
Concept of Rays
Explanation of the "Rays from the Beginning of Movement" Concept
Core Idea
My proprietary analysis method is based on using rays constructed on Fibonacci mathematical and geometric principles. These rays create a system of dynamic levels that help predict precise asset movements and identify key zones where price interactions occur. Price interaction with these rays signals probable scenarios: either a reversal or a continuation of movement, but only after interaction and the appearance of dynamic factors and patterns.
Why Predicting Specific Levels is Not Possible
Financial markets are nonlinear systems, where price movement is determined by numerous variables, including market volumes, liquidity, macroeconomic factors, and participant psychology. Instead of attempting to predict specific levels, I propose analyzing probabilities of price reaction at pre-calculated key zones. Price interaction with rays provides additional insights into the direction and strength of movement.
How Rays Work
Fibonacci Rays: Each ray corresponds to a specific angle of inclination, which is mathematically significant and correlates with natural proportions and the start of movement.
Primary Advantage: Rays are constructed from the beginning of a movement pattern, rather than traditional extremum points commonly used in classical technical analysis. This allows for the rapid and accurate accounting of new trend or corrective movement phases.
Adaptability: When a new pattern emerges, rays are automatically adjusted to show the potential movement range. Price may exit this range and enter another, interacting similarly with a different ray.
Rays are Ascending and Descending: They define the boundary of the movement channel.
If you have questions or need personalized analysis for other stocks, feel free to reach out in direct messages. All indicators and tools mentioned are available via our profile link.
Thank you for reading, and as always, trade safely and strategically!
Denis Mikheev - TheWaved™
