Google (NASDAQ:GOOG) — The world’s largest Internet company may see an increase in revenues in 2012, but a decrease in net profits in likely due to costs from recent acquisitions and a slowing world economy.
On the long-term weekly charts, GOOG has been in a rectangle for over four years without a successful breakout. Major support is around $460, and a break below that line could lead to a serious decline.
Buying momentum is falling and internal indicators are universally overbought. The recent advance may be an early present to those that cash in on Google. At the very least, holders should take protective steps to limit losses by selling calls or buying puts on the stock.