Google Class C stock surged on Friday, breaking above the resistance (now turned into support) territory of 1130. The price continued to trade north on Monday, but on Tuesday, it ended the session slightly in the red. The stock continues to trade above the long-term uptrend line drawn from the low of the 27th of June 2016 and thus, we believe that the long-term outlook stays positive. The short-term outlook appears positive as well, with the price trading above the tentative upside support line taken from the low of the 3rd of May.
If the bulls manage to take charge today, we may see them aiming for the 1177 level or the 1186 zone, near the stock’s all-time high. That said, we would like to see a clear and decisive break above that barrier before we get confident on the continuation of the prevailing uptrend. Such a break would confirm a forthcoming higher high on the daily chart and would bring the share into uncharted territories.
Shifting attention to our daily oscillators, we see that the RSI lies above 50, while the MACD, already positive, has just crossed above its trigger line. Both indicators detect positive momentum, but the fact that the RSI turned down yesterday make us cautious that a setback may be in the works before the next positive leg.
That said, even if the price retreats near the 1130 support, or the short-term upside line, we would still see a decent chance for the bulls to jump in again and drive the battle higher. We would like to see a clear close below 1130 before we start examining whether they abandoned the battlefield, at least in the near term. Such a dip could initially aim for the 1095 barrier, the break of which may pave the way for the 1055 zone, or the long-term uptrend line drawn from the low of the 27th of June 2016.
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