Google Breaks Its Trend Line: Where Drew Is Buying ($301)

Hello everybody. Drew Dosek here with Verified Investing. Today we've got pro charts to go over for stocks. All right guys, so I've got four charts picked out. Some of which I think can be some great buying opportunities in the near term should we see a little bit more selling pressure. But nonetheless, these are some very big stocks. ones that do move quite a bit and ones that can actually get you some decent profit on these swing trades. So, let's take a look at these stocks. First up, guys, looking at Google. Now, as you may say, like Drew, you just said, these stocks move a lot. Well, Google can move a lot. As we've seen here, price action at this low of March of this year was right around 272, and we pushed up and made a high of 40861 before coming back in on the charts. Now, I've got the time frame uh zoomed back out for you on the daily time frame looking at this inclining parallel channel that has mainly been containing price. You can see here when the outline, the lower range of this parallel channel has not been hit for a while. And we see here with this inclining trend line taken back from the pivot low in June of 25 connected with this pivot low of March of 26. Notice how we hit it once, twice, three times, and then now on the fourth and fifth subsequent hits, we are now breaking this trend line. So, where is Google going with a potential breakout breakdown at hand right now? So, we zoom in a little bit closer. And guys, I'm going to go through this with you on several of these charts because again, analyzing stocks is a repetitive sequence. Stocks move up, move down. They create patterns and so analyzing them as long as you can learn a few easy technical analysis tools. You can dispose and use those to help you make money. So watch this. So we pull up the chart here on Google as I've already illustrated by simply drawing a parallel channel and one inclining trend line connecting pivot lows. We see now Google is on the verge of a breakdown. Now we haven't got any confirming breakdown that would be required with an extended daily move lower than today's candle after today. So you need to see a little bit further selling pressure that can increase probabilities of price remaining underneath this trend line. This was support when price came from above and now when price if we can have another sell day this trend line will then become resistance. All right. So again where do we find the next level that Google may go? Well, I grab my Fibonacci retracement tools. This is one of the easiest tools that you can use in your chart. All you have to do is find a low pivot and I did right here on this March 30th pivot. Draw my first Fibonacci sequence pivot point there. Then go up to the most recent pivot top high. We clearly see right here when price fell in July, it pierced the 618 fib retrace and bounced up. Now, on this next attempt, there could be some minor support here. This area could produce the bounce to retest the bottom of the trend line, but I'm not interested in that little gain right here, potentially about $12 or so on um on this chart of Google. I'm looking for a bigger gain. And so I actually have my eyes focused more on this 786 fib retrace. Notice how that's at $31. the psychological whole round number of 300 likely will be a spot that will be supported if we didn't have this Fibonacci sequence retracement illustrating that this could be a good support level. In addition, we've got the bottom of the parallel uh channel coming in contact with this fib level and October 21st. So, if we see a potential bounce near term, retest that trend line, then further selling, that's going to be a great spot to pick up some Google. Also, look back on the chart. Notice all this consolidation and low pivots right in this range illustrating that this area is a very high probability area for a bounce should we have selling come down into this area within the next month or so by October 21st. Uh next up on the chart of AVGO pretty similar scenario uh on AVGO but AVGO in fact is breaking the bottom of its parallel channel. You can see this parallel channel has hold has had held price back since December of 2024 with a little bit of a dip underneath it just briefly here in March of this year. Now we find ourselves we've confirmed beneath had the retrace up to that trend line much like what I'm describing could occur up here on Google. We already confirmed the move down. Once we did we retrace got rejected and you see price is really kind of jockeying around this area of the broken inclining parallel channel. So, much like with Google, guys, what did I say? This pattern recognition is repeatable. I'm getting my Fibonacci sequence retracement tool, taking it to the most recent pivot low, take it up to the most recent pivot high, and boom, look at that 786 fib retrace that comes right in line with a gap fill here back from April 7th. That tells me now with price got pretty close here on um September 3rd, but it since has bounced up. And that tells me that if price can plummet straight back down, this will be the location of interest for buyers to provide a bounce on AVGO right there at 333 and 84. Next up, we've got LIT on the opposite end of the spectrum putting in a potential breakout candle today. You can see yesterday attempted for a breakout, but by the time the closing bell rang, we actually pulled price back down underneath this declining trend line. This trend line, I mind you, it's just taken from pivot high to the very next significant pivot. And that illustrated the uh price action resistance on uh uh the chart yesterday. Now, today we're actually accelerating up above this declining trend line. This would only be the first day closing above this trend line. If in fact that does happen, that trend line basically is at today's lows at 97869. Then the work is still set for LIT. This isn't just a breakout and blow past everything. We need to then follow it up with another push higher tomorrow. If we're able to do that, any sort of return back down to this declining trend line could be a buying opportunity for a resumption of momentum. The one problem with this, we're not overbought nearly at 61.63. But 70 is that threshold. All right. So, if we were to continue pushing up, we're going to bubble up against that 70 threshold, potentially pierce this 50% area, the parallel, come in contact with the high here, $1,50, and then I see price could give us that opportunity to come back down to this trend line right around $970 for the then following bounce on the chart. Still more work needs to be done, but at least put this on your radar. It is in potential breakout mode. Certainly breakout watch today on LIT on the daily time frame. Next up, a very similar chart, guys. We've got AMD. Now, AMD has broken out from this near-term trend line. Now, this isn't the high pivot, which is illustrated from this second trend line that I'm highlighting right now above current price right at 52796. So, you can see price over the last four trading days nearly straight up, gapping over this first uh declining trend line for a breakout, not even retracing, and then just running straight up and kissing the resistance level today. Now, if we look on our is RSI here, similar story as LIT getting an approaching overbought, but not quite there yet. That does allow AMD some extra room to run if it can get above this level tomorrow. Potentially put in uh a near-term pivot high. Retrace back down to this trend line at 5181 and then that could be the breakout retrace bounce play on AMD. But first things first, we need to get a daily close above then a secondary push beyond that. It could happen the day after, a couple days after, but just be mindful of that. It's not necessarily a buy as soon as we get a daily close above. What that extension does is it allows spacing so that this declining trend line can flip from resistance into support when price comes back down to it. If we just have one candle up, price can easily navigate its way right back down through that trend line. So, be mindful of that. Those are breakout retraces, how to play them, uh what they're going to be looking for as far as buy levels and a potential continuation with that momentum. All right, guys. Thanks so much for tuning in and watching today with Pro Charts breaking down these uh uh four charts with TA breakout scenarios, breakdown scenarios at hand with potential buy levels on Google coming up as well as AVGO. All right, guys. Uh thanks again for watching. My name is Drew here at Verified Investing. We'll see you next time. Until then, take care, folks. [snorts]