Google stock in bearish correction mode; steep losses are expected.
Google stock price has been edging lower over the last five days, with the biggest drop being in Thursday’s session. The price hit the 1045.60 support level taken from the low on March 2, while the selling interest started from the bounce off the 1177 resistance level. The short-term momentum indicators are confirming the recent bearish bias.
In the daily timeframe, from the technical point of view, the RSI recorded an aggressive bearish movement and slipped below the 50 level approaching the oversold zone. Moreover, the stochastic oscillator is holding below the 20 level with strong negative momentum.
To the downside, in case of a break below the 1045.60 level, the next level to have in mind is the 990.70 support. A drop below this area could take the stock closer to the 957.00 key level and could extend the scenario for a bearish correction.
Conversely, there are obstacles such as the 40-day simple moving average at 1104 and the mid-level of the Bollinger band near 1110, where the price needs to surpass them before it moves towards the 1177 barrier, taken from the high on March 12.
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