How high can Google go?
How high can the technology giant go at this point in time? Well it seems there is no end to this rally so far... until it eventually comes. The sompnay has been having a great year with shares rising substantially and earnings progressing at a decent pace.
When can we play this rally?
Well the best answer is porbbaly after a correction, but such an event has not been anywhere near the spotlight for a while. We will be looking at current hourly ranges to mark a base around $1,108 for a potential purchase of calls on a daily basis.
For now that seems a bit far, especially in today's thin trading. Binary options on Google shares are shaking hands at $1,114 and are very unlikely to move anywhere near the lows for the day, but next week could provide some fresh impetus.
If we fail to get a base around $1,108 we might see another round up towards $ 1,120-25, but for now we don't think its going to happen right away. The fundamentals for the stock are very strong, but it already had a great rally so the risks for a correction are rising.
Therefore we will be keen in buying only if a base around $1,108 holds up. The second level to look at afterwards is $1,100 - if that fails we could be shaking our heads and reversing direction. As we already said - we believe Google will keep pushing higher for now.
Giving away their mobile operating system Android for free has been very positive for the company as it is shaping up to be the best performer in mobile advertising. Smartphones that are running Google's operating system are now making up 80% of the smartphone market.
Competition from Yahoo and Microsoft has also been quite benign - Google owns 40% of the digital advertising market in the US with Facebook coming in second with just a little more than 7%. The picture is similar in the global landscape with the company accounting for more than 30% of this multi-billion dollar industry.
So keep your eyes open for a dip in prices - it might pay off very well on buying call daily binary options.