Reader Request: Google Support and Resistance

By | March 14, 2015

Richard asked: “Since the 50% Fibonacci retracement level of the 2014 range on the Google chart was broken on Friday, what are the current levels of support and resistance?”

Richard, it certainly would have been better if the 50% level had held and the stock was able to recover its 200 day moving average, but that was not the case. The low of the day did find support at a minor uptrend line drawn off the January and February lows, which is a mild positive, but the momentum continues to the downside. The RSI moved below its centerline, the MacD has made a bearish crossover, and Chaikin money flow is below its 21 period average, which I use as a signal line. Firmer support looks to be positioned in an area between the 38% retracement level and the 50 day moving average just below it, and resistance in a zone delineated by the 50% retracement level and the 200 day moving average just above it. The integrity of these areas of support and resistance should determine the short term direction of the stock price.

3314. GOOGLchart

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