GOOG – Google (Last:500.37)

Google (GOOG) price chart with targetsGoogle probably has a further six percent to fall before it will have a chance to find traction, since the minimum downside target implied on the daily chart is 469.54 (see inset).  The midpoint sibling of that number is 507.63, so any rally to that number should be used as an opportunity to get short (although Tuesday’s thrust to 506.99 may have been it.)  If the target doesn’t contain the selling, the stock would be facing more possible downside to 434.98, the target of another pattern on the daily chart.  What makes the bearish case so compelling here is that neither of two important  ‘B’ coordinates was ‘sausage’.