Google stock finds support at 40-day SMA; breaks above 38.2% Fibo.
Google stock price is creating a short-term upside rally over the last month, after the rebound on the five-month low of 1024. The price tested and broke the 38.2% Fibonacci of the down move from the all-time high of 1288.47 to low 1024, of 1124.50. A pullback in the up move found support on the culminating simple moving averages (SMAs) of 14-, 21- and 40-days on July 9.
The short-term 14- and 21-SMAs confirm a positive momentum, as well as the MACD which is accelerating away from the trigger line and is crossing above zero in the positive area. The RSI and the ADX also support the rising bullish bias, with the former increasing above the 50 level while the ADX confirms a strong directional trend above the 25 level, indicating further advances.
Momentarily, the upward rally above the 38.2% Fibo level of 1124.50, could see near-term obstacles around 1157. More gains could drive the price to test the 61.8% Fibo of 1187.80 and the resistance 1190.90 before any of the all-time highs are considered.
However, if momentum indicators were to turn negative with the 50.0% FIbo level of 1157 holding, initial support would be found at the 38.2% Fibo of 1124.50, with the uptrend line and the 23.6% Fibo of 1087 the next victims. A Bearish bias would exist with an ultimate break below the low of 1024.
Google stock in the medium- and long-term suggests an overall positive outlook.
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