Five Star Stock Watch: Google, Inc.

The company: Google, Inc.

Ticker Symbol: GOOG

Sector: Technology   

Industry: Internet Information Providers

Google Inc., a technology company, builds products and provides services to organize the information and make it universally accessible and useful. It provides Search, a service that delivers relevant search results in response to user queries; Product Listing Ads that offer product information; Search plus Your World; Google Now, a predictive search feature; and Google Knowledge Graph, which enhances Search service

Related: Five Star Stock Watch: Apple

The company also offers AdWords, an auction-based advertising program; AdSense, a program which enables Websites that are part of the Google Network to deliver ads; Google Display, a display advertising network; DoubleClick Ad Exchange, a marketplace for the trading display ad space; and YouTube that provides video, interactive, and other ad formats. 

Related: Five Star Stock Watch: Groupon

In addition, it provides Google Mobile that extends its products and services to mobile device users; Google Local, which provides local information; Android, an open source mobile software platform; Google Chrome OS, an open source operating system; Google Chrome, a Web browser; Google+ for sharing various things online with different people; Google Play, a cloud-based digital entertainment destination; Google Drive, a place for users to create, share, collaborate, and keep their stuff; and Google Wallet, a virtual wallet for in-store contactless payment.

Please take a look at the 1-year chart of GOOG below with my added notations:

Back in October GOOG surged higher on the annoucement of strong earnings. Since then, the stock has formed a sideways conslodation pattern which seems to imply an eventual break higher. Price momentum is starting to turn higher as well. A solid close above the $1040 resistance should confirm that move higher. However, a break below the support of $1000 should mean lower prices for the stock instead.

Related: Five Star Stock Watch: Facebook

Google isn't set to release earnings again until January, 2014.

No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!