GOOGL shares are still on an uptrend but price appears to be pulling back in order to draw more buying support. For now, price is moving around the 50 SMA (simple moving average), which used to act as a dynamic support area for price action.
MACD is reflecting a pickup in selling pressure though, indicating that further losses could be in the cards for GOOGL shares. Price might dip until support at the 200 SMA, which is around the $560/share level. RSI is almost in the oversold area already, which means that buyers could hop in sooner or later.
GOOGL Shares Forecast
A bounce from the nearby support levels from $560-$575/share could lead to a rally to the previous highs at the $609/share area or beyond. If buying momentum picks up, GOOGL shares could make their way up to $650/share.
On the other hand, a break below the 200 SMA strong support zone could signal the start of a longer-term downtrend for GOOGL shares. Risk aversion has been present in the financial markets so far and hasn’t been so good for higher-yielding equities.
Earlier this week, the company announced that it acquired smartphone messaging company Emu that comes with a built-in assistant. The Emu app uses A.I. to analyze conversations and help schedule appointments, make reservations, view movie times, and share locations among other options.
Analysts put their stock recommendation for GOOGL shares on hold after this acquisition as it is not clear yet what the impact to their operations will be. Some say that this could be Google’s move to come up with a competition for Apple’s Siri assistant on iPhones, only this will be used on Android devices.
According to Emu, “Hey did you hear? We’re joining Google! That’s right! And we’re super-excited. But to focus on our next chapter, we have to close the last one. As of August 25, 2014, we’ll be shutting down the Emu app. It will no longer be available in the App Store, and existing users won’t be able to send, receive, or download messages. We know it’s an inconvenience, and we regret that.”
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