Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

Search This Blog

Tuesday, January 10, 2012

Google at support. Scenario in case of a break below $618.00

The daily chart of Google shows the selloff in the last few sessions, especially yesterday, when the stocks dropped by 2.4%.

Technically speaking, Google price formed an island reversal, the pattern that usually calls for a top. The first resistance is in the $646.00 area, where the gaps are located.

Yesterday’s close of Google was close to the T1 trend line that is acting as support. The $618.00 level  is also a support due to July and November highs. Therefore, a stronger sell signal would be in place if the price would break below $618.00 level.

TAKE CARE though, because, in many cases, a break below an important support is quickly followed by a sharp pullback, before the down move will resume (as shown in the chart). 

No comments:

Post a Comment