Traders Pushing Google Toward the Bull
The company has strong technical support and has been moving up on heavy volume, encouraging a bullish bias.
The dip buyers showed up again in Google (GOOG) (the prior resistance acted as support yesterday). Google was also moving up on heavy volume.
Here's the chart with exponential moving averages. Note the next resistance is where 10-day (not shown), 20-day, and 50-day EMAs come together at $557.
Click to enlarge
Strong technical support exists at the bottom of the consolidation panel, which incidentally is also quite close to the 200-day EMA that hasn't been violated ever since Google crossed above it in April 2009. But even though this technical support is strong, it is, at present time, many dollars lower from here. So, I'd keep a fixed dollar stop loss on this position.
This could be a relief rally or window dressing or simply a case of the buyers becoming immune to the news of Google's exit from China -- but traders are often more concerned with opportunistic moves rather than intellectual debates. This thought, coupled with good chart action, is spurring my bullish bias toward Google.
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