$GOOG — Two bearish harmonic patterns

The MarketZone analysis reveals bearish setup on $GOOG

since last earnings, GOOG is still floating above the 1000$ level. The daily price action has created two harmonic trading patterns that are presenting a possible setup for short with a compelling risk/reward.

Friday’s price action already confirmed sellers at these levels, ending the day with an inverted hammer candlestick pattern (or PinBar reversal, price action pattern).

We have to see how the markets will open tomorrow and if the stock price will stay at current levels (no gaps up or down), it will give a nice entry level with tight stop loss and initial target at 1030$ (38.2 Fib level for the larger pattern and 61.8 Fib level for the smaller one).

If the stock will show strong selling pressure, we actually could see the earnings gap filled as an extended target.

This setup is part of the MarketZone’s Weekly Markets Analysis. You can read more here: http://marketzone.tumblr.com/post/68592041001/weekly-markets-analysis-1-12-13