Google (GOOG): Below $710 Risks $600

PUBLISHED: 21 Oct 2012 @ 19:29 | Comments (0) |

Google (NASDAQ:GOOG): Loss of 50 Day Moving Average

Shares of Google have succumbed to both bearish RSI divergence and an unfilled gap to the downside at $765, a combination that warned us there was a problem with the recent bull run even before the mysterious fat finger of October 18th. The likelihood now is that while there is no end of day close back above the 50 day moving average now at $711 is that we will be treated to a further probe for support. Given the ferocity of the dive it is unlikely that a floor will be found before the 200 day moving average at $632, with the favoured destination at this point being the initial July resistance of $600. The overall view is that at least for some months sentiment will be damaged and that existing 2012 highs will not be retested until well into 2013.

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