Google Shares Selloff to Resume? – Nov 10, 2014

Google Shares Selloff to Resume? - Nov 10, 2014

Google Shares Selloff to Resume? - Nov 10, 2014

After a corrective wave pattern in the previous week, Google shares seem ready to resume the drop, as resistance at the $550/share area held. RSI is heading south, confirming that selling momentum might be taking hold once more.

MACD is climbing though, which means that price could still pop higher and possibly test the 50 simple moving average and dynamic inflection point. However, a continuation of the drop could take Google shares back to the previous lows around the $510/share area.

Google Shares Forecast

Further weakness for Google shares could lead to a break below the $500/share psychological level and a prolonged selloff until early next year. Risk appetite appears to have weakened lately, as tension on the US mid-term elections and looming war in Ukraine are weighing on sentiment. This has led to a bit of weakness in US equities, although it remains to be seen whether this could last or not.

Additionally, weak US NFP readings sparked a selloff for stocks on Friday, as investors worried that the pace of jobs growth is weakening. However, a closer look at the components of the report still indicates that there is enough strength in the jobs sector, enough to keep the Fed on track to tighten monetary policy sometime next year.

The lack of wage growth is a concern though, and it could keep weighing on company shares for the time being. If not, a bounce past the 50 SMA and $550/share level might push Google shares to test the previous highs at the $590/share area and perhaps move beyond the $600/share mark later on.

What’s weighing on Google shares for the meantime also is the company’s weaker than expected earnings report for the third quarter of the year. Recall that ad growth slowed down, prompting speculations that the company might not be able to build on its revenue streams.

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.