Google (GOOG): My #1 Technical Pattern for 2011

Google is a stock we have talked about all year, and especially since strong earnings in mid-October. While the market has been in a manic state over the last few months, Google (GOOG) held in strong. The stock has looked poised to break out to 52-week highs, and today we are seeing this upper level flag pattern come to fruition.

I think this could be just the beginning for Google. This stock looks ready to explode in 2012. It has become the leader among the high-beta tech names, especially with the weakening of former leaders Amazon.com (AMZN) and Apple (AAPL). Google is much more than search, and continues to take a strong hold on emerging industries like mobile and cloud computing.

The stock has been in a three-year consolidation with a more short-term upper level flag pattern. Perhaps the reason for the long-term consolidation is the sheer size of the company and anti-trust centered regulatory concerns.

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Short-term, there is a bull flag that can give a short-term cash flow above $630. Longer term I see a cup and handle pattern that forecasts a move to 2007 highs of $750.

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Disclosures: No relevant position

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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