Trading the Setup In Google
Published on Thursday, 06 December 2012 08:00 Written by TradersHuddle Wire
New York, December 6th (TradersHuddle.com) - Google Inc. (NASDAQ:GOOG) ended the trading session at $687.82, near its 50 day moving average set at $703.13. Google's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.
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.
The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $636.00 and resistance at $705.89. These levels will be closely monitored, as they provide great insight into the latest price dynamics.
If traders want to establish a position in Google, given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.