It was inevitable, I suppose, that once I’d covered Apple someone would request a report on another US giant, Google (NASDAQ:GOOG).
Of course it has also been in the news this week following its much-vaunted revamp and name change to Alphabet.
Firstly, the Google chart allows a simple lesson as it illustrated something important about game changing gaps.
The share rose by $70 at the start of a session and generally I’m delighted when this sort of thing happens as it allows me to identify the historical trend with a degree of comfort.
In the case of the Google chart, the blue line dating back to 2014 tells me with startling comfort the forces I should have been working with prior to the trend break.
When I apply these forces to what has happened since the new trend commenced, I calculate future movements above $675 should lead to an initial $704 with secondary a longer term $731.
Additionally, I’m fascinated with the movement just before the market closed on August 11 as it proved to be one of the neatest bits of housekeeping possible.
When a share is gapped up, I always have a lingering suspicion as to how long it will take before the market finds a reason to drift the price down to cover a manipulation gap.
This risk always biases my thinking when projecting future share moves.
But, in Googles case, I can cheerfully announce my super long term target is now at $797 for those blessed with infinite patience and utter trust in the marketplace.
In short, Google, like its search engine, is looking fairly reliable for the future.
Alastair Strang is the founder of www.trendsandtargets.com