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).
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