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
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