Technical Analysis: GOOG, AAPL, AMZN
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December 28, 2009
BY Thomas Kee:
Editor, Stock Traders Daily
Real Time Trading Reports: Included are detailed trading reports designed to help investors realize opportunities in these companies. The reports are linked to the stock symbols in the article below.
(La Jolla, CA) Are you cautious as 2010 begins? The Market has surged in recent months, and many attribute that to window dressing. Others say the increases will continue. This articles attempts to dispel any myths, and offer evidence supporting specific trading strategies involving the companies listed herein. Should you be interested in any one of them, specific trading plans are provided in our real time reports.
Google (NASDAQ: GOOG): Although Jim Cramer has been touting GOOG aggressively, the fact is that GOOG is rapidly approaching a level of longer term resistance. A test of that will be a sell signal. We have defined this as longer term parameter #3 in our real time trading report. GOOG has recently broken out, beyond former levels of resistance, and it is now approaching longer term resistance. Shares should increase from current levels, but soon they will hit a brick wall. Investors in GOOG should consider taking profits when longer term parameter #3 is tested, and traders should start to consider the stock for pullbacks, and shorting opportunities once the Market begins to weaken as well. Review longer term resistance now by reading our report: FREE GOOG TRADING REPORT
Apple (NASDAQ: AAPL): According to our combined analysis for AAPL, if the stock can hold converted longer term support, which we have defined as longer term parameter #1 in our real time trading report, the stock has another solid leg of upside ahead of it. A break below longer term parameter #1 would be a red flag though, and could be the first sign of a meaningful pullback. Given the recent surge in the Market, and in shares of AAPL too, investors must be cautious, and these red flags must be respected. Use longer term parameter #1 as inflection. If it holds, expect a test of longer term parameter #3, which is longer term resistance. However, if longer term parameter #1 breaks lower, expect a meaningful pullback. Details can be found here: FREE AAPL TRADING REPORT
Amazon (NASDAQ: AMZN): Although AMZN has been a darling this Holiday Shopping Season, it may be facing serious headwinds. AMZN is very close to longer term resistance, as we have defined in pour combined report. Longer term resistance is defined specifically as longer term parameter #3. Because the stock is near resistance, upside looks limited. Instead, if resistance holds a meaningful decline could come instead. Some investors are expecting the Market to continue to move straight up, but we all know that the Market never goes straight up. This resistance level is a signal to secure gains, and become cautious. Only if this resistance level breaks higher would a bullish signal come again. For now, be aware of this inflection level by reviewing longer term parameter #3 in our report, and make sure you respect it. FREE AMZN TRADING REPORT.
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