Undeniable that Google is one of the greatest companies out there, but the expanding multiple is being questioned, especially after the major shakeup in management. While I think any entry point would be great long term on this stock, the next few weeks will see this lower.
PRICE - $508 is the previous short term support, and I think with little to no new news planned from the company over the next couple of months, this moves towards that level. If it bounces off of it, I would watch the $560 level to see if the Oct. 31 resistance still holds.
ACCUMULATION - The past few weeks have seen this a lot of distribution. Most likely a number of active money managers are chasing returns at companies with higher risk and higher potential returns.
MACD - The MACD clearly looks exhausted and the cross down look like it's going to grind lower rather then have a sharp drop. This further supports the pricing action.
PRICE - $508 is the previous short term support, and I think with little to no new news planned from the company over the next couple of months, this moves towards that level. If it bounces off of it, I would watch the $560 level to see if the Oct. 31 resistance still holds.
ACCUMULATION - The past few weeks have seen this a lot of distribution. Most likely a number of active money managers are chasing returns at companies with higher risk and higher potential returns.
MACD - The MACD clearly looks exhausted and the cross down look like it's going to grind lower rather then have a sharp drop. This further supports the pricing action.
