After a bit of consolidation around the 50 simple moving average, which has acted as support, Google stock has shown more upside momentum in the past few days. Price bounced off with a strong candle close above the $580/share level and could be headed higher.
A rally could take Google stock up to the previous highs near the $600/share level. Price could find some resistance and consolidate around this area later on, but sustained buying pressure could take it to new highs throughout the year.
MACD is also confirming a return of buyers, as the indicator is stalling midway and showing signs of moving back up. Similarly, RSI is also reflecting an increase in buying pressure, as the oscillator has climbed back above the 50.0 region and is climbing.
Google Stock Forecast
On the other hand, a break below the previous consolidation could mean more losses for Google stock. However, there is a short-term support area at the $560.00/share level that might act as a floor for any stock selloff. A break below this area could lead to more declines all the way down to the psychological $500.00/share level.
This week, Google announced its acquisition of image recognition company Jetpack. he company offers personalized recommendations based on user’s photo albums including smiles, backgrounds, and other meta information.
For now, Google hasn’t announced any plans regarding the Jetpack acquisition but many speculate that the company will use it to incorporate the technology into apps that fit with Google’s cloud and mobile strategy. This could be promising and drive Google stock higher if it pushes through.
Traders are seeing positive prospects for Google stock if the company continues to position itself in the location-based services department, driving mobility in the mobile world and in the online arena.
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