Support turned resistance at the $560/share level held in the past weeks, but it looks like Google shares might make another attempt to break higher. Price recently bounced off support near the $530/share area and headed back above $540/share.
MACD is on middle ground, barely offering any clear clues at the moment while RSI is on its way down. This could be indicative of further losses for Google shares unless price tries to test the area of interest once more.
Google Shares Outlook
Improved risk appetite allowed Google shares to pop higher, as the PBOC rate cut renewed hopes for a global economic recovery. This was enough to support higher-yielders like the commodity currencies and US equities on Friday. However, traders might be keen to book any profits off their stock trades early this shortened trading week.
Bear in mind that Thanksgiving is on Thursday and US markets will be closed by then until the weekend. This could lead to volatile price action on the last trading day of the week for US traders, which is on Wednesday.
Stronger risk appetite could lead to another test of the $560/share area for Google shares while a downturn in risk-taking could lead to a move back to $510/share. Earlier in the week, an ad-serving outage led to sharp declines for Google shares though, leading many to worry that another instance could lead to more losses for the stock price.
Further gains past the $560/share mark could lead to an actual test of the 50 SMA, which has held as a dynamic inflection point for price action. A move past that area could lead to more gains for Google stock, which could rally until the previous resistance around $590-600/share eventually.
To contact the reporter of the story: Jonathan Millet at email@example.com