Short-term Support on Google Stock – Sept 12, 2014

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Short-term Support on Google Stock - Sept 12, 2014

Short-term Support on Google Stock - Sept 12, 2014

Google stock has been moving sideways for the past couple of months, but it appears that the uptrend is still intact. MACD is on middle ground at the moment and offering no clear directional clues while RSI is indicating a bit of bearish momentum.

For now, Google stock is also drawing support from the 50 simple moving average, which has held as a dynamic inflection point for the share’s recent pullbacks. The uptrend seems weak though, and there’s still a good chance that price could break below support.

Google Stock Reversal

A downside break below support at the $570/share area could be a sign of a reversal, which might eventually take Google stock down to the next support area at $540/share. In fact, it looks like a head and shoulders reversal pattern is forming on the daily chart.

If support holds, Google stock could bounce up to the previous highs near the $600/share level. Stronger buying pressure could even take the stock up to new highs for the year, depending on whether or not risk sentiment supports the rally.

For now, it looks like risk has been uneasy again, owing to the fact that geopolitical tension is on the rise after US President Obama authorized another round of airstrikes against ISIS. If this conflict subsides though, risk appetite could support US equities once more.

The delay in the EU’s Antitrust Settlement delay for Google has been weighing on its stock price recently, as the commission demanded Google to rewrite its search algorithm in such a way that it doesn’t favor Google products. Recall that Google has already come up with several revisions over the past four years but these haven’t been approved by the European Commission so far. A resolution to this issue could prove to be positive for Google stock.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com