Despite the Google Share price being within an inch of its all-time high, CNBC’s Jim Cramer said “I think it has a lot more room to run”.
Since the March 2020 low, Google stock (GOOG) has been in a consistent uptrend. It has gained +141% over the last 14 months to the current $2,411.56.
With the Google share price only marginally below last month’s $2,452.38 all-time-high, Jim Cramer has become even more bullish.
The zany host of CNBC’s ‘Mad Money’ believes a foray into the health market may pay dividends for shareholders. As part of the deal with HCA Healthcare, Google will provide advanced algorithms to improve patient outcomes.
He said:
“You’ve got to understand, the health-care industry has all of these electronic medical records, and they don’t do anything with them,”
“harnessing them in any way that generates more empirical data and diminishes reliance on anecdotal evidence would help patients.”
He believes the alliance could provide a huge boost to the Google share price, saying: “If it works, it is a gigantic deal,”
The stock has been trading within a rising parallel channel for more than a year. Earlier this month, the price did manage to pop above the top end of the channel at $2,333.0.
However, within a week, it had reversed the breakout. The price dropped as low as $2,2230.0 before stabilizing.
Over the last week, the price has flirted with this trend line resistance. The price has traded above the line in each of the last 5 sessions. Basis Friday’s close, GOOG has pulled back into the channel.
I maintain a positive rating for the Google share price. However, this is not the right area to trade. Until the price can convincingly clear the trend and the ATH, a buy signal is absent.
If the price turns lower again, it should find support at the 12th of May low of $2,230.05. Below that, additional support is found at a series of highs in March around $2,130. 0.
A break of the previous high at $2,452.38 should trigger momentum buying. Longs may wish to add a position on this clearance. They should then place a stop below the ascending trend line, currently situated at $2,424.0.
This should provide a low risk entry into the possible upside extension.
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