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If you’re to ask me, I think Google (GOOG) has done a remarkable job of holding its value this year. I know there have been some fairly rough patches where it declined in excess of 20% on multiple occasions, but as it stands right now, GOOG is close to breaking out to multi-year highs. Considering the year that the market has experienced, I wouldn’t say there is not a lot of stocks that can make the same claim. 

But GOOG is coming up on a cross roads here fairly quickly, and it’ll be interesting to see what path it takes once it reaches that juncture on its weekly chart. 

Here’s what I’m seeing:

  • Nice bounce recently off of the 50-day moving average. 
  • Quickly approaching multi-year resistance. Expect the head-winds to kick in around $660-665 range. 
  • Bearish wedge formed over the last 4 years as well. A break down and below the pattern (i.e. support) at $525 would likely kick off a long-term bearish trend for the stock. 
  • If it breaks through the $525 level, there is a secondary support level that could save the stock at $490
  • At this point there is nothing worth buying in terms of equities, but you could play some options in the form of a longer-term straddle (once support/resistance breaks), or play off of the stock staying within the bearish wedge for a few more months through the use of an iron condor strategy. 

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