During the whole year of 2009, the stocks of the internet giant Google Inc. (more known as google.com or GOOG as its ticker symbol) had been on an uptrend and as the year 2010 went in, it started to decline. I’m pretty sure everyone of you knows google.com as you use it for searching almost anything on the web. But do you know they also have interesting products like googlemars and googlemoon? You might want to check those out. Anyway, like in the case of Citigroup found in my earlier post (kindly check here), despite the considerable amount of the 2010 2nd quarter earnings of Google Inc., its stock price intensely dropped by 7% to $459.61 during last Friday’s session. These cases make myself agree on the quote “buy on rumors and sell on news” or probably its just the arising fear of traders and bankers toward the market which makes positive news lead to negative results. However, as a google die hard fan, I’m confident that the company is doing pretty well not only because I benefit so much on their awesome web products but also based on the 2nd quarter figures they released. So if you’re a long term investor and you know how the company fairs you wouldn’t mind these slight changes.
Although not all people are investors, there are a lot out there that are short term traders like myself. That’s why in the stocks of google.com, it only isn’t the fundamentals that I look into but also the technicals. Right now, the stock chart of google is on 4-month downtrend and the current support could be $435.38. If the price further drops below the $435.38 marker, the next support could be the $400.00 psychological level. On the upside, the immediate resistance could be the 4-month downtrend. Once that area gets cleared out, the next resistance level could be $494.70-500.00.