Buy Goog: Google (505.49) Oversold with strong daily buy divergences

Rationale: Google is strongly oversold at these levels and is displaying strong upside buy divergences suggesting a buy recommendation is in order. After holding support in the 520-502 area, breaking lower to 480, Google now appears poised to move higher from these price levels. With a current TTM P/E of 42.50, annual 2007 & 2008 average EPS estimates are: $13.16, $17.33, respectively, giving a potential 2007 price target between $543 - 609.

ST Price Target: $520 1st technical resistance level
LT Price target: $543, 2007 earnings target
Stop: $490 (1.5 X 14 day ATR)