Tuesday, November 11, 2014

GOOGL Google Daily Chart Death Cross Sideways Channel

The death cross occurs for Google with the 50-day MA crossing down through the 200-day MA. As often repeated here, take the death cross and golden cross (50-day MA up through the 200-day MA) with a grain of salt. More often than not price is recovering or recovers strongly after a death cross occurs, as occurs for Google in the chart above, however, the cross does forecast weakness ahead which will occur with the 50 staying under the 200.

The purple and brown rising wedge patterns create spank downs along with the negative divergences. The bottom in mid-October was cheesy with only the stochastics and barely the RSI producing enough positive divergence to lift price but as in the case of the broader indexes, the central bankers pumped the markets to prevent a catastrophic failure in stocks so GOOGL rocketed higher as well. The indicators wanted to and want to see lower lows. The pink bars show how price has made a perfect 50% Fibonacci retracement to 565-ish from the September-October selloff, and received a slap down from there. The 567-ish is strong resistance. The 573-ish level is also strong resistance and encompasses the 572-574 level which is the 50 and 200-day MA resistance.

On the underside, the 550 level is strong support. Thus, price is at 558 staggering through 550-575 deciding on which way to break. Google bulls win big above 575. Google bears win big below 550. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 11:22 AM on Wednesday, 11/12/14: GOOGL pushed higher testing the upper boundary at 565 and today lower down to 555 teasing the lower side. So the fight through 550-575 continues.

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