Google Is Moving Above Resistance

Published on Friday, 11 January 2013 08:00 Written by TradersHuddle Wire

New York, January 11th (TradersHuddle.com) - Shares of Google Inc. (NASDAQ:GOOG) closed the session at $741.48 just above calculated resistance at $741.47. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

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 stock was trading in a well defined range with support at $696.00 and resistance at $741.47. Given that this range was broken, traders will be closely monitoring Google's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Google is still near the broken resistance level, traders will be focusing on the $741.47 level to see if the stock holds the breakout without rolling over.