Technical Analysis – Google stock unable to break above 38.2% Fibo and 200-SMA

Melina Deltas, XM Investment Research Desk

Google stock price has found a strong resistance level around the 38.2% Fibonacci retracement level of the downleg from 1,288.47 to 1,023.50 near 1,125 as it tries to extend its gains after the rebound on 1,023.50. Momentum indicators now suggest that the market sentiment might increase even higher as the stochastic lies in overbought area and the MACD is rising above its trigger line.

If the market turns to the upside again and surpasses the 50-simple moving average (SMA) it could revisit the 1,147 resistance level before touching the 50.0% Fibonacci of 1,156.

On the other side, if the stock price manages to slip even lower, the next support could come from the 23.6% Fibonacci mark of 1,186. Below that, the 1,070 region could be the next major obstacle to attract attention.

To summarize, the Google stock bias looks positive in the short- and long-term, while a bullish rally above the 50- and 200-SMAs could increase speculation for more positive orders from traders.