GOOG Shares Testing Short-Term Resistance

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GOOG Shares Testing Short-Term Resistance

GOOG Shares Testing Short-Term Resistance

GOOG shares have been trending higher, moving inside a rising channel on its 1-hour time frame. Price is testing the channel resistance at the $730/share area and might be due for some profit-taking, bringing it down towards support.

RSI has already reached the overbought level and turned down, indicating a pickup in bearish momentum. Similarly stochastic is making its way out of the overbought zone so sellers could come in play. In that case, GOOG shares could drop until support at $700/share.

However, the 100 SMA just crossed above the longer-term 200 SMA, indicating that the path of least resistance is to the upside. With that, an upside break of the channel resistance could take place, starting a sharper climb for the stock.

Reports that Google is facing challenges in encrypting phones could wind up weighing on share prices, as this might drive most handset makers away from Android technology. As it is, around 400 manufacturers and 4,000 devices rely on this operating system.

This comes after Apple’s battle with the FBI to unlock an iPhone used during the San Bernardino shooting last year. Apple controls both hardware and software components of iPhones, which means stronger encryption protocols.

In other parts of the globe, Google has failed to overturn a ruling by Russia’s competition watchdog that it had abused the dominant position of its Android mobile-phone operating systemThe Moscow Arbitration Court on Monday upheld an earlier ruling for Russia’s Federal Antimonopoly Service, which  ordered Google to rectify its violations of antitrust laws, forcing the company to pay a large fine and favoring the Russian search engine Yandex NV.

 

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.