Google stock has been in a downside correction after the upward rally towards the all-time high of 1,929, touching the 20-day simple moving average (SMA).
From a technical perspective, the short-term bias is viewed as negative, reflected by the descending move in the technical indicators. The RSI is pointing down in the positive territory, while the MACD is losing momentum near its trigger line and above the zero level. However, the 20- and 40-day SMA posted a bullish crossover and the Ichimoku lines are still sloping up.
In the event of a downside reversal below the short-term SMAs, the 1,808 support may ease selling pressure. Failure to bounce off the latter, could bring the 23.6% Fibonacci retracement level of the up leg from 1,010 to 1,929 at 1,711, which overlaps with the long-term rising trend line. Even lower, the 38.2% Fibonacci at 1,578 could shift the bias to neutral.
Alternatively, an upside move could take the stock towards the all-time high of 1,929 before entering uncharted levels such as 2,000 and 2,100.
Summarizing, Google’s stock has the potential to gain additional ground. A climb above the record top is expected to trigger the next upside move. On the other hand, a drop beneath the uptrend line could turn investors’ eyes to the downside.
