Google Dips Beneath $500
Google (GOOG) dipped beneath $500 per share today for the first time since August, 2007. Google has been on an almost solid decline since early 2008, and price has depreciated 32% from its all-time high of just over $740 per share:
Notice the “triangulation” action which took place from early November until the price breakout as 2008 began.
Notice how the prior momentum low preceded (indicated) that new price lows were yet to come. There currently is a potential momentum divergence setting up.
Price has already exceeded the measuring objective inherent in the price pattern, and has also broken beneath the daily 200 period moving average, which traders often use as potential support zones.
The weekly chart looks even worse, but paints a more interesting picture:
Imagine the pain felt by the buyers who bought at the top and have suffered through this large volatility sell-off as of late.
Google is a major name stock followed by many traders, and many newer traders are in disbelief that things could have gotten this bad this fast with this high-flying stock.
Always be careful and try to expect the unexpected. Anything can happen in the market!
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