Google Stock Quote

Google stock wasted no time showing its intentions Friday - down.

The stock spent the morning dropping $10. The day started out with a gap down on the open and made the high of the day almost immediately. The stock blasted through the 100% extension level at $179.60.

The afternoon was spent in a trading range between $169 and $172.

So what’s the next level of support based on Fibonacci?

The 30 minute chart with expansion levels applied shows GOOG closing below the 100% expansion level.

Typcially, a close below a level suggests a continuation of the current trend.

expansion level

The 30 minute chart with retracements overlayed shows the stock just below the 50% retracement level of $179.60.

retracement level

Fibonacci analysis using two different time frames shows GOOG closing below two different levels.

If the stock continues lower from here, where does the next Fibonacci support levels come in at?

Let’s look at the even larger time frame. The next chart is the daily time frame with the standard, 38%, 50%, and 62% levels marked off.

daily retracement levels

The 38% fibonacci retracement level shows up at $162.38.

Now combine that with the next levels from the 30 minute (1) expansion chart and (2) retracement chart. You get a chart that looks like this:

Fibonacci levels from multiple time frames

• $163.28 is the 62% retracement level from the 20 Oct 2004 low at $139.60 to the all time high of $201.60
• $162.38 is the 38% retracement level from the 2 Sep 2004 low at $98.94 to the all time high
• $160.59 is the 162% expansion level off of the all time high to the low at “A” projected from the high at “B”

Traders looking to add on to or establish a short position will wait for confirmation that the stock is continuing to decline. A break below Friday’s low of $168.55 is that signal. If filled a protective buy stop order goes above the Friday afternoon high of $172.25.

sell short