GOOGL’s leadership could give the broad averages some added boost, assuming the rally pattern shown lives up to its potential. Most immediately, that would require a decisive push past the red line, a midpoint Hidden Pivot resistance at 746.53 (see inset). The stock became a theoretical buy when it gapped through the green line on today’s opening bar. If there’s going to be an opportunity to get aboard belatedly, it would most likely come on a pullback to the red line after it has been exceeded by at least $3 for perhaps 8-10 bars on the 30-minute chart. This is a ‘mechanical’ trade, and it will give us good odds on a shot at 764.76 if the opportunity materializes on Thursday. _______ UPDATE (June 12, 4:20 p.m. EDT): Friday’s nasty selloff brought GOOGL down to 730.51, but the bullish scenario detailed above will remain valid until such time as 728.29 has been exceeded to the downside. _______ UPDATE (June 14, 7:54 p.m.): The stock rallied weakly after slightly exceeding 728.29 to the downside, but the ascent will need to hit 737.30 today to hint of a bullish turnaround. A print above p=748.09 would confirm it.
