Google Stock Quote

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.