Trading Idea: Is Google close to Support?

Published on Wednesday, 06 June 2012 08:32 Written by TradersHuddle Wire

New York, June 6th (TradersHuddle.com) - Shares of Google Inc. (NASDAQ:GOOG) are trading very close to calculated support at $568.35 with price action closing at just $570.41 and placing the stock near levels where traders will start paying attention.

Google's stock range is defined by its calculated support defined at $568.35 and by the resistance level at $637.85, which should be used by traders planning their trades. These support and resistance levels are based on a peaks and troughs algorithm of the stock's price action.

Traders wanting to establish a position should pay close attention to Google's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $637.85 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.

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.