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Green Light to Buy Google

GOOG reversal was accompanied by two buy signals


Google (NASDAQ:GOOG) — The world’s largest Internet company has had its rating increased by Standard & Poor’s to “investment grade” due to expectations of a stronger operating performance. 

The stock fell sharply in October following a Q3 earnings miss. But there are recent indications that its core business of online search and mobile and display advertising will continue to have healthy long-term growth. And the company is noted for its exceptional liquidity and minimal financial risk profile.

Earnings estimates are for $39.82 per share in 2012 and $46.39 in 2013. Analysts have a mean price target of $800 within the next 12 months.

Google fell almost 18% from its October high before reversing on Friday from its 200-day moving average at $639. The reversal was accompanied by a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), and its MACD also flashed a buy signal. Buy GOOG at $670 or less for a trade to its 50-day moving average at $710.

Trade of the Day – Google's (NASDAQ:GOOG)
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Trade of the Day Chart Key

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