Google Stock Quote

This is an important price level for Google stock. The $100 price level is a strong support level on the first day of trading for GOOG.

If the stock breaks below this level (and it did trade below $100 today), then expect the $95 level to be tested again.

Keep in mind that more shares are becoming available soon. Insiders will be allowed to sell more than 4 million shares this Friday. I would like to think that those insiders are in it for the long haul, but the price action will tell the true story.

And from where I am sitting, it looks like the people who own this stock are a little nervous right now.

What if you are an owner of GOOG who bought the stock after the stock went public? If you bought on the first day of trading, you would be lucky to own this company for less than $100 / share. The stock spent less than fifteen minutes trading for less than $100.

More than likely, you bought in somewhere north of $100. If you are an investor, then no problem, you’re in it for the long haul … right? If you are a trader who is long the stock and are watching the stock hovering around support you might be rethinking your trading plans.

What if the stock breaks - and breaks hard - below the $100 level? Where’s the next level of support?

The obvious answer is the all time low at $95. Can you stomach a drop like that?

And what if the stock trades below that level? I’m speculating that $85 would be a price level of some serious support (think about all the people who are kicking themselves for not getting in at the IPO price of $85).

My point is simply this, have a plan for trading this stock, or any stock, before you take a position. Once you are in, make sure you have a solid money management method for controlling your losses and letting your winners run.

Take notice.

Some of GOOG shares are unlocked as of Friday of this week.

What this means is that a group of insiders can sell their shares for the first time. The quantity, about four and a half million shares.

Google has been different then most publicly traded companies. A typical publicly traded company will have a lock out period of 180 days before insiders and employees can unload some shares.

Not Google.