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 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
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