Google shares appear to be gaining more buying support, as price has bounced off the 50 simple moving average once more. The pair has made a strong bounce of the dynamic support level, after forming a doji candlestick a few days earlier.
This suggests that buyers are refusing to let Google shares fall below the $570/share support zone, as it is forming higher lows. MACD is reflecting a potential pickup in buying momentum, which could take price up to the previous highs near the $600/share level. RSI is also reflecting a pickup in buying pressure, as the oscillator is moving higher.
Google Shares Outlook
A short-term range can be seen though, with Google shares currently testing resistance around $590/share. If this continues to keep gains in check, price might move back to the bottom of the range or at the 50 SMA support, which is at the $580/share level for now.
Sustained buying momentum might eventually take Google shares past the $600/share level, as the FOMC has committed to keeping interest rates low, which could support businesses all over the United States for the foreseeable future. This could keep equity gains in place until the end of the year.
The latest EU antitrust case hasn’t been going well for Google so far, but this issue doesn’t appear to be weighing on stock prices for now. In the latest set of updates, NewsCorp has dubbed Google as a “platform for piracy” and that the tech company is giving unfair advantage in its ads and search results.
Further conflict could keep Google shares hovering below the $600/share area in the meantime while a resolution to this issue could go either direction. A win for Google could lead to a sustained rally past the $600/share area while an EU victory could push shares below the 50 SMA.
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