Google Stock Quote

I very well could be getting ahead of myself here, but here goes.

The price action for Google indicates that price support might be kicking in. Why do I say that?

Let’s look at the evidence.

First, the price action for the last 4 trading days occurs on lighter volume then the days prior that brought the stock price down to the $400 level. A lower low, which I am describing, on lower volume indicates a slow down in momemtum with regards to the current trend. The short term trend is down from the Januaray 2006 high.

Second, last week’s spike low in the low $370’s is very near the 50% price retracement from the October 2005 low to the January 2006 high. Additionally, the correction off of the high was done in a symmetrical ABC fashion.

Third, and this is weak evidence, there is a gap above current prices that needs filling. While I am familar with the expression that gaps liked to be filled, I’m also not promising anything. If and when the stock starts to fill that gap, I’ll put my bullish hat back on. And by filling, I mean trading above the recent high a few days ago near $405.

Today is shaping up to be an inside day. There is about 50 minutes left in the trading day and I am going to assume that price won’t exceed last Friday’s high or low. This means, for tomorrow, if price trades above today’s high (or even better, above Friday’s high), then the bulls are indicating some kind of control over this stock.