Trading Idea - Is Google close to Resistance?

Published on Thursday, 09 February 2012 07:48 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Google Inc. (NASDAQ:GOOG) are trading very close to calculated resistance at $610.83 with the current price action closing at just $609.85 placing the stock near levels that make it difficult to buy.

Google Inc. (NASDAQ:GOOG) is a global technology company that provides a web based search engine through its website. Its automated search technology helps users to obtain instant access to relevant information from its online index. The company provides targeted advertising and Internet search solutions, including web, image, groups, directory, and news searches.

Google's current stock range is defined by current calculated support defined at $564.55 and by the resistance level at $610.83, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Google, as the stock is well above support, however, as the stock pulls back towards $564.55 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $610.83 then traders will get an opportunity to enter Google stock by establishing a position as the stock moves to a higher range.