Google Stock Quote

Here we go …

Google has rallied off of the $176.29 low. Today’s high price was $196.36.

The next price level of resistance based on Fibonacci retracements is at $199.09.

Fib resistance

The $199.09 level is the 78.6% retracement level of the recent downswing.

It’s obvious that the other common Fibonacci levels did not stop this rally. So what’s to say that the 78.6% level will do the job?

To be honest, I don’t know.

What I do know is that the most recent rally started at the 78.6% retracement level of the previous rally. See the chart.

rally starts at 78.6% retracement level

History has an interesting way of repeating itself.

P.S. - Now that I have put my comments on the line, keep in mind that GOOG plans to announce earnings tomorrow.

Wenesday’s price action “un-did” a lot of technical damage.

It’s difficult to argue with a stock that gaps up on the open and continues higher through the rest of the day.

As often happens after a big move day, Thursday’s price action was a consolidation of those gains.

Keep in mind that Google reports earnings soon.

The market puts in a stellar turn-around performance and what does Google’s stock do? Goes the other way.

The overall market put in a solid performance today with the major U.S. stock market averages logging solid gains.

Google, on the other hand, is marching to its own drummer. Today’s low comes right in at the 78.6% Fibonacci retracement level.

78.6% retracement

Google stock made it clear that the previous support at $187.72 was not going to be respected.

As a matter of fact, the stock sliced right through that price level within the first 20 minutes of trading today. The rest of the day was spent carving out a trading range in the $180.32 to $183.45 range.

So much for the $200 stock.

broken support

Don’t be too surprised if this stock sees price at the 78.6% Fibonacci retracement level in the very near future ($176.35).

After that, the next level of support is the December 9 low at $168.47.

Things change quickly.

I don’t think this chart needs much explanation.

test of support

Let me give you a little background.

The last post I made suggested that the recent price high for Google could very well be an important one. The stock barely made a new high before dropping quickly. Given that the overall market is reacting in a similar fashion, this price high looks to be a significant one.

Since the price high just above $205, the stock has dropped down $17 in just three short days.

Friday’s price low is just above the January 6 low of $187.72. If this stock is still in an uptrend than it’s important that - at the very least - this stock finds some kind of support at this price level.

On the other hand, if GOOG trades right through the January 6 low like a hot knife through butter, then a more serious correction is likely.

As always, let’s see what the price action tells us.

Google stock took care of the Fibonacci resistance levels I mentioned the other day.

But.

Recent price action - along with the rest of the market - indicates this could very well be a significant top.

First, the stock takes about the previous all time high set earlier in the month by trading up to $205.02.

Then today, the stock starts off by making a slightly higher high at $205.30 then failing.

The first hour’s price bar today was a large range reversal bar to the downside.

Reversal to the downside

Interestingly, today’s low at the end of the day was just twenty cents above the 50% retracement. See the chart to see what I mean.

Google stock has put on a good show.

On the first trading day of 2005, the stock made a new all time high hitting $203.64. The price never followed through and quickly reversed to the downside, dropping more than $8 the very next day.

The stock continued lower for a couple of more days until finding support at the $187.72 level on 6 January 2005. The price level corresponds with the double “tweezer” top that occurred on Friday, November 12, 2004 and Monday the 15th near the very same price level.

It’s been six trading days since the $187.72 low. What’s next?

Given that GOOG has been a star performer, my “gut” says higher prices.

I’m going to temper that feeling with some Fibonacci analysis.

That chart linked just below shows possible resistance near the $200.23 and the $200.88 level.

Fibonacci resistance

If you are interested in the analysis involved to determine those Fibonacci resistance levels, slide your mouse over to the right side of this page and sign up for the free Fibonacci lessons. These lessons spell out how those type of price levels are determined using Fibonacci analysis.

I’ll comment again soon, if and when GOOG gets near the $200.23 - $200.88 level.