An interesting pattern has formed on GOOG's weekly. Since 2010 GOOG has failed to get above 631 testing it around 6 times-each time failing and each time declining back to the 200 ema. The resistance is more around 626-630 but 631 is the high and a break above that level would signify a break of the entire resistance giving a better chance of a sustain breakout. This has created a large ascending triangle pattern with the top of the triangle at $631 and the bottom trending from $431 up to $500. Because of its size a break out would be big over a $200 point move with a price target of $831 this would be an all-time high.
Triangle Size: $631-$431= $200
Breakout Level: $631
Price Target if There is a Breakout: $831
There are two ways to look at this chart first the break out and close above 631 would be a huge deal for GOOD and potentially very bullish. Second is to look at it and say this pattern will continue; and that GOOG will decline back ot the 200 ema-meaning a 100+ point drop from here.
This is a weekly chart so it may take a while for one of these events to play out but it will be important to watch this. If GOOG can break out above that long-term resistance it could have bullish implications on the market. One thing to note is that many times these larger very bullish patterns do not work out because of the long-term time frame as they become susceptible to market pressures.
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