Google (NASDAQ: GOOG) has been a laggard this entire year and I’ve had it as an avoid, but every month or so I see a potential “cash flow” trading pattern. Right now many fundamental guys are starting to turn more positive and I see a decent tradable pattern in it.
It has made a decent move off of the lows and is now creating a tight bull flag type pattern. It is also bumping against a mini-downtrend that could cause a bit of a squeeze. It is important to not be early here. The market is still overbought, so you need to make sure it triggers and holds with some volume. Playing laggards can be dangerous as they usually go only if the market has continuation.
The strategy is to buy tier one GOOG if it breaks above 482.50, then you can add tier 2 if it clears 485 with volume. The cash flow target is 492.95 and the longer term target is 508-510. Remember to wait for your trigger, and stops should be placed at 477.
