Downtrend Reversal on Google Shares – Feb 4, 2015

Downtrend Reversal on Google Shares - Feb 4, 2015

Downtrend Reversal on Google Shares - Feb 4, 2015

After its steady decline throughout the last quarter of 2014, Google shares seem to have bottomed out and might start a reversal. Price has created a double bottom formation on its daily time frame and is attempting to break above the 50 simple moving average, which might act as support moving forward.

Price has yet to climb past the neckline to confirm the potential uptrend, as resistance at the $540/share level is keeping gains in check for now. A move past the longer-term 200 SMA and an upward SMA crossover might be enough to indicate that an uptrend for Google shares is taking place.

Google Shares Outlook

MACD is still moving up, indicating that there’s enough buying pressure present to extend the price rallies. RSI is on middle ground though and is on its way down, suggesting that a bit of profit-taking might be happening.

The pickup in risk appetite in recent trading sparked the strong run in US equities recently, as investors no longer appeared too concerned about the impact of falling inflation. Although some US companies have reported significant losses for the previous period due to the slump in energy prices, others such as Google and Apple seem to be enjoying strong earnings nonetheless.

The upcoming NFP release could provide more clues on the state of the US economy and the performance of equities, including Google shares. A strong figure could confirm that spending and consumer activity would stay afloat even if price levels continue to decline, lending more support to stocks. On the other hand, a disappointing report could cast doubts on the strength of the US economy and force shares to return their recent gains.

If further weakness is seen, Google shares could fall back to its recent lows around the $500/share level, which has held as support in the past weeks. A break below this area could be a sign that further losses are likely.

To contact the reporter of the story: Jonathan Millet at

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Jonathan Millet is currently the proud CEO of, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at Before was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.