GOOG Searches For Direction

The 50- and 200-day simple moving averages (SMAs) are among the most
widely watched indicators among major institutions and private
investors. For this reason, these moving averages often act as powerful
support and resistance. Here’s a case in point in GOOG.

  1. During May of this year Google (GOOG) finds support at its 200-day SMA.
  2. The stock shoots up 100 points by mid-April.
  3. GOOG falls back down and trades in a tight range between its 50- and 200-day SMAs.
  4. GOOG pulls away from its 200-day SMA and breaks about the 50-day.

No predictions here…but undoubtedly some traders will be speculating
that GOOG will be returning to its highs from earlier in the year.