Technician’s Edge: Quick Look at Levels to Watch in XOM GOOG and AAPL

Dec 18, 2009: 2:33 PM CST

Today’s article for the “Technician’s Edge” column at the GreenFaucet.com website takes a quick look at key levels to watch in leading stocks Google (GOOG), Apple (AAPL), and Exxon-Mobil (XOM).

I examined Google’s critical level at $600 recently in my post: “Like S&P 500, Google is at a Make or Break Resistance Level.”  The analysis remains unchanged as we remain under $600 per share.

Here is a quick ‘fly-by’ look at Apple’s (AAPL) daily triangle pattern forming:

Price is forming a tight consolidation between the upper and lower trendlines that rest at the $195 (upper) and $190 (lower) levels.

Any break of $190 would be a bearish omen, having broken daily EMA support and also prior price support at the $185/$190 levels (now a valid trendline).

Volume has trailed off as price has entered this consolidation period, so we could be coiling up like a tight spring, preparing for a breakout move – watch these levels closely in the days/weeks ahead.

Finally, a quick look at the breakdown into potential support in Exxon-Mobil (XOM):

The last time I commented on Exxon-Mobil was to highlight the key breakout from the symmetrical triangle pattern.

I mentioned that a logical target would be the $75 level, which was slightly exceeded with a negative momentum divergence, marking a 2009 high into the close of the year with a minimum bullish target successfully hit.  See the prior post “An October 15th Update on the Triangle in XOM.”

Now, we see price testing potential support at the $68 per share level, which reflects extended trendline support along with the 61.8% Fibonacci Retracement.

A break beneath $67 would be a bearish omen for Exxon and potentially for stocks as a whole.

Let’s keep these leading stocks in mind as we wind down 2009 and enter a new year – the resolution of these key levels will give us clues as to what to expect for the broader market’s next likely move.

Corey Rosenbloom, CMT
Afraid to Trade.com

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

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