Google is having an incredible day in the market today for two reasons. First off, the stock is recovering from the recent market declines we’ve seen in the United States market. On another note, Goldman Sachs made the decision today to upgrade the stock and increase its price target. So below, we’ll talk about how normal market activity caused a bit of a climb, the Goldman Sachs upgrade that gave the stock an extra nudge up, and how to profit from the trends we’re likely to see moving forward.
How Normal Market Activity Assisted In Today’s Decline
As mentioned above, Goldman Sachs did upgrade Google’s stock. However, that’s not the only factor that played a role in today’s climb. As a matter of fact, normal market movement assisted in the gains as well. For the last three trading sessions, Google stock, along with most others, ended the day in the red. Considering the fact that price movements in the market tend to happen through a series of overreactions, it only makes sense that Google, along with most other stocks, would correct upward to a more sustainable rate before declines continue. With that said, I believe that the majority of the increase we saw today was the result of normal price movement in the market.
Goldman Sachs Upgrades Google
While I believe that the majority of the increase was caused by a correction to an overreaction, I can’t discount the fact that the Goldman Sachs upgrade gave Google a helping hand toward the top. Earlier today, Goldman Sachs analyst Heather Bellini made the decision to upgrade the stock to a “buy” rating from a “neutral” rating; raising her price target on the stock from $680 to $800. The new price target insinuates an upside potential of more than 30% higher from the earlier price target. The reason behind the decline was threefold…
- Improved monetization on mobile platforms.
- Improved monetization in YouTube.
- Google CEO, Ruth Porat’s comments with regard to keeping a check on expenses.
What We Can Expect To See Moving Forward
Today was a great day in the market. However, we can’t forget that we are in the midst of a bear market and stocks are most likely not done declining just yet. With that said, even in the midst of the good news, I still think Google stock may be on the chopping block for many investors looking to balance their portfolios with a higher risk environment. With that said, I’m expecting to see quite a bit of volatility from Google. However, this is good news for binary options traders because you can make profit both ways. Here’s how you do it…
Start by opening the Google stock chart and drawing support and resistance lines. From there, watch the stock until it reaches one of these points. If it reaches resistance, chances are that the stock will decline dramatically; so, put options are going to be your best bet. Adversely, if the stock reaches support, we’re likely to see gains; so purchase call options to ride the gains to profit. Ultimately, there’s money to be made either way, it’s all about timing your entrance.
What Do You Think?
Where do you think Google is headed and why? Let us know in the comments below!