Google (GOOG) is getting flat out bushwhacked today, following yesterday afternoon’s earnings report. 

If you bought calls or stock straight up, it is a blood bath for you (again, this is a perfect example of why you don’t hold trades through earnings). 

So where does it go from here? Well, check out my chart and its key levels and trends:

google goog googl chart

It is important to note that the rising channel that it had been trading in since the December lows form last year, has officially been broken. However, since this chart has been made, Google (GOOGL) has made a mild attempt to reclaim the 50-day moving average and for now, it is hovering right over it. 

The bigger key going forward, is if the bulls can avoid making a “lower-low” on the chart. If it can’t avoid that, then the bullish momentum will have burned out, and likely to go to $1,100/share. 

If you are wanting to play the bounce, I’d say hold off that today, wait for Apple (AAPL) to report its earnings, and if it shows any signs of stabilizing tomorrow, then it might be worth getting long on. 

The problem with buying the dip right after earnings, and not waiting a day or two first, is that most stocks of late, when they disappoint on the earnings front, there is another 1-2 days of selling that hits the stock right afterwards. So I think it is much better to hold off any aggressive buying of Google until near the end of the week. 

Happy Trading!

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