After a big decline in April, Google ($GOOG) consolidated the last few weeks and the Bollinger Bands narrowed significantly. This could be called a Bollinger Band squeeze or volatility squeeze. The next directional signal depends on the band break. A move above the upper band would be bullish, while a move below the lower band would be bearish.
Click this image for a live chart.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
Learn More
