Google Stock Falls Again, Nearing Important Price Support
If the stock can hold above $765, it will remain constructive for a bounce, or perhaps more.
Since then, Google stock has fallen about 7%. And on Friday, GOOG stock gapped below its 50-day moving average toward an important confluence of support -- one that active investors should be paying attention to.
Below is a near-term chart of GOOG stock. To give you an idea of how my technical eyes move, here’s what stands out to me:
- Price is below the 50-day moving average (caution).
- Price is still above the short-term uptrend line from November to present (important near-term support).
- Price is resting just above a confluence of support (around $765): uptrend line, 38.2% Fibonacci retracement, and the October closing highs – this area also aligns with a measured A-B-C move lower (very important near-term support).
Keep an eye on the Relative Strength Index (RSI), as it is currently at 38.50. Note that a drop down near 30 often leads to a trading bounce. However, I prefer an RSI divergence before I enter longer-term swing trades. Trade safe, trade disciplined.
GOOG Stock Near-Term Chart
Editor's Note: Andrew Nyquist is an independent investor based in the Minneapolis area. This article originally appeared on his investing and economics site, See It Market.
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