Will Google Continue to See All-Time Highs?

With shares of Google (NASDAQ:GOOG) trading around $814, is GOOG an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for a Stock’s Movement

Google is a global technology company focused on improving the ways people connect with information. The company generates revenue primarily by delivering online advertising. With Google taking most of the world’s market share in search, look for this giant technology company to continue its dominance.

T = Technicals on the Stock Chart are Strong

Google is trading near all-time highs and does not see any signs of slowing. The stock has seen its ups and downs but has overall displayed a beautiful uptrend. It took a few years for the stock to break the key $600 per share level but once done, the stock has surged over 40 percent. With no immediate price resistance in sight, Google is poised to follow this price trend higher.

Key simple moving averages can provide insight into the trend and strength of the trend. What are the key moving averages? The 50-day, 100-day, and 200-day simple moving averages. Google is currently trading above all of its rising key simple moving averages. This is excellent indication that the stock is in an uptrend and a strong one at that. In fact, the stock is even trading above its rising 20-day simple moving average, which also confirms a short-term uptrend.

Taking a look at the implied volatility and implied volatility skew levels of Google options may help determine if investors are bullish, neutral, or bearish. The implied volatility of Google options is at 25.07 percent, using Friday’s close, which coincides with a 63rd percentile over the last 30 trading days and 50th percentile over the last 90 trading days. What does this mean? This means that investors or traders are buying a good amount of call and put options contracts, as compared to the last 30 and 90 trading days…