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Price:GOOG has been cruising up for 6 months, dipping below the 50MA half way. For many stocks a 6 months uptrend would be amazing, and a continuation a bit improbable. However, this is GOOG, which makes tons of money and is extremely well known and popular. Long uptrends are not uncommon for strong companies such as GOOG. The 50MA is pretty much an arrow straight up, and the tests of the 20MA, and the 50MA check, are all easily passed. Any excessive price movements up are balanced with good moves down. Overall a healthy looking price action. Volume: Volume is pretty even, a couple of spikes up but nothing alarming Stochastics: Stochastics follows the up and downs of the price very nicely. It is just now coming out of oversold territory, with the promise of going up again into overbought territory. Rolling price and stochastics action is very promising for a continuation of the patterns. ADX, +DI and -DI: +DI is making a beautiful series of higher pivot highs, in sync with the higher highs of price. -DI made some challenges, especially when the 50MA was tested, but at this point the +DI is in full control over the -DI. ADX has been rolling above 25, confirming the stock is in a solid uptrend. MACD: MACD is on the way back to above zero, it's rolling nicely around the zero line. Conclusion: There is plenty of comforting rolling action. None of the indicators are signaling danger. Even though most stocks can't sustain such long uptrends, GOOG is one of the few that can. A long buy of GOOG would have a good chance for success at this point. Below is the stock 3 months later. Try to find the October 6, 2009 date where the chart above left off. GOOG indeed kept going up for another 3 months, potentially giving a 20% profit. The next challenge is to decide what to do at this point. GOOG is now testing its 50MA, and it seems to be holding. What comes next? Hold if you own, buy long if you don't, or sell short? Look at all the indicators again, and when ready, click here.  Chart by
www.FreeStockCharts.com
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