Short-term Uptrend Channel on Google Shares – Sept 29, 2014

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Short-term Uptrend Channel on Google Shares - Sept 29, 2014

Short-term Uptrend Channel on Google Shares - Sept 29, 2014

Google shares have been moving sideways recently, although there is a slight uptrend shown by the rising channel in the past couple of months. Price has found support around the 50 simple moving average, which is close to the bottom of the uptrend channel support.

MACD is moving sideways, suggesting that more range-bound behavior can be seen from Google shares in the near term. Price is currently testing the support area, which indicates that a bounce could take place and last until the top of the range near the $600/share area.

Google Shares Forecast

With price still moving above the short-term SMA, there’s a good chance that the uptrend could continue. A pickup in buying pressure might even lead to an upside break past $600/share and signal more gains for Google shares.

On the other hand, strong selling momentum might lead to a break below the 50 SMA and channel support, possibly setting the stage for more losses. This could push prices down to the $560/share level or lower to $500/share.

Analysts predict that prices could go as high as $800/share for Google shares this year, as the company is seeing strong growth potential. Of course this depends on how market sentiment fares for the last stretch of the year, although it looks like US equities are drawing strong support.

The US Fed has committed to keeping stimulus in place for the time being, even as the economy has shown signs of recovery. This suggests that businesses could continue to benefit from easy credit and investment, which could drive revenues higher before the Fed tightens policy.

Google already has strong and steady cash flow generation yet it aims to innovate further in order to generate more revenue and stay ahead of its competition, putting the upside bias in place for its stocks.

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