Important Price Point
I don’t think this chart needs much explanation.
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.
