A Look at Daily Google GOOG Trend and Support Levels

Sep 4, 2009: 12:32 PM CST

A reader asked me to take a look at Google, so let’s chart Google’s (GOOG) daily course through 2009 and note key levels of support to watch going forward.

2009 began with a choppy, $100 range before breaking out to fresh highs in late April.  Price has maintained an enviable and solid uptrend since the March lows, with few interruptions along the way.

In a solid uptrend, we need to concentrate our focus on the 20 and 50 EMA, noting their orientation (direction and space between) as well as note when price ‘pulls back’ or retests the rising 20 day EMA (green).  This often sets up buying opportunities (trades) particularly when a reversal candle (such as a doji or bullish engulfing) forms at the average.

The stop would go just below the 20 EMA or – even better – just below the 50 EMA.

For now, we observe a negative volume and momentum divergence as we have journeyed to new highs for 2009 (which serves as a non-confirmation), but have supported once again on the rising 20 EMA on the recent retracement.

For support, let’s watch the $450 level as initial expected support, and then the $435/$440 level (rising 50 EMA) as intermediate potential support (both from the daily chart).

Expected weekly support comes in at the $400 / $425 level (50 and 20 week EMA respectively).  There’s also prior price support at the $400 level from the July spike lows.

Any break beneath these support levels would trigger a ‘scalp’ to test lower support, and a break of $400 would likely forecast lower prices to come and a reversal in trend to the downside.

What’s good for Google is usually good for the broader stock market so keep watching this and other leading stocks closely.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

2 Comments

2 Responses to “A Look at Daily Google GOOG Trend and Support Levels”

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