Google Stock Quote

Since announcing earnings this past week, Google stock has spent the rest of the week “consolidating” the stock price appreciation.

That’s a polite way of saying the stock has traded down.

On the surface, this might appear as a negative for the company’s stock. The stock gaps up to new highs and fails to follow through.

But who can blame people for wanting to bank some profits on this big winner? Besides, aren’t shares becoming available soon, i.e. - unlocked?

With that in mind, let’s look at the price action since the recent spike high.

My opinion is that the decline from the earnings announcement has been an orderly correction. Note that the first downswing (from the all time high to A) on the 15 minute chart is still greater than the recent downswing from B to C.

possible support

Based on Fibonacci retracements and projections, the $200.53 to $201.14 price range could be expected to act as support to further price drops. Often when two or more Fibonacci price targets overlap, price support (or resistance) can be strong.

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Now, if the stock price chops right through the Fibonacci support levels just mentioned, then I’ll be a little concerned.

And if the 50% retracement level gets taken out with ease … I’ll be reconsidering my position on this stock. But until then, this stock looks promising.