Google to break the downtrend
Google is set to make its 6th straight down week. That is only the second time in the past decade that has happened by my count.
At a lowly 23.4, Google's PE is significantly lower than the other tech giants and after a few weeks of bad news (an absurdly bad Gemini demo, the monopoly ruling, potential breakup - although, this isn't actually bad news, is it?) it's seen some support at the 160 level.
While the rest of tech has rebounded quite well since the big drop on August 5th, Google lags behind, not yet making up the losses from that day alone. As seen in the chart, Google is facing a strong resistance line and it is currently bumping up against it, trying to break out.
If we zoom out further, we can see a long-term support channel where Google got some support on August 5th and it has continued to trend with the same direction and magnitude as the overall trend.
The overall market is feeling pretty good right now, recent consumer spending has warded off the concerns of a recession and there isn't a clear reason to sell on the macro level unless you're expecting worse economic news than economists. That being said, the rebound is fairly well extended at this point and short-term profit taking could see this resistance hold for Google again.
I think Google breaks through this resistance soon and we see shorts scramble to cover, quickly pushing Google up to 175-178.
At a lowly 23.4, Google's PE is significantly lower than the other tech giants and after a few weeks of bad news (an absurdly bad Gemini demo, the monopoly ruling, potential breakup - although, this isn't actually bad news, is it?) it's seen some support at the 160 level.
While the rest of tech has rebounded quite well since the big drop on August 5th, Google lags behind, not yet making up the losses from that day alone. As seen in the chart, Google is facing a strong resistance line and it is currently bumping up against it, trying to break out.
If we zoom out further, we can see a long-term support channel where Google got some support on August 5th and it has continued to trend with the same direction and magnitude as the overall trend.
The overall market is feeling pretty good right now, recent consumer spending has warded off the concerns of a recession and there isn't a clear reason to sell on the macro level unless you're expecting worse economic news than economists. That being said, the rebound is fairly well extended at this point and short-term profit taking could see this resistance hold for Google again.
I think Google breaks through this resistance soon and we see shorts scramble to cover, quickly pushing Google up to 175-178.
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