TheRumpledOne
6,411 posts
msg #58211
- Ignore TheRumpledOne |
12/17/2007 1:25:49 AM
From StockScores:
1. GOOG
GOOG is one of the most actively traded stocks in the world which makes it easy to trade because you can move in and out of the stock or its option quite easily. This week, the chart of GOOG shows a break down from a short term upward trend that sets up a falling top pattern. That makes it probable that the stock will move lower over the next few weeks. What is important is the risk reward of the trade. If correct, the stock has good potential to fall to the $615 price point. The recent high of $724.80 establishes resistance that a person can use as the stop loss point. The idea here is to either short sell the stock or buy a Put option with the intention to cover the short at a loss if it closes above $725. With the stock's Friday close around $690, there is a $35 risk on the trade with about $75 of profit potential, making the risk reward ratio better than the requisite 1 to 2 risk reward ratio.
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