Google shares are undergoing increased selling pressure, as price fell back below the 50 simple moving average on its daily time frame. This indicator has acted as a dynamic inflection point in the past and has held as resistance in the previous test late last year.
MACD is moving up, although it could indicate a pickup in selling momentum soon. RSI is also moving south from the overbought area, which means that sellers are in control of price action for now.
Google Shares Forecast
Price previously made a sharp break above the resistance at the 50 SMA but this proved to be a fake out, as price is now back below that level. This could mean a move towards the previous lows at the $490/share level is in order. A break below this area could confirm that a longer-term downtrend is taking place.
The FOMC interest rate decision sparked losses for Google shares and US equities in yesterday’s US trading session, as the prospect of monetary policy tightening could weigh on spending and business investment. After all, higher interest rates could encourage consumers to save rather than spend while making business loans more expensive.
Should buying pressure return for Google shares, price could still break back above the 50 SMA and make a move towards the next resistance at $550 share or higher. Take note though that the 50 SMA is still treading below the longer-term 200 SMA, indicating that the downtrend could carry on.
Google is set to print its earnings report today and might lead to more moves for the stock price in the upcoming New York trading session. Analysts project that the company could show profits of $7.12 per share, although a downside surprise might be seen. After all, Google earnings have missed forecasts in the past four quarters.
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