- The analysis notes Google’s early-session gap lower and recovery, framing recent weakness as a broader market pullback rather than a breakdown.
- Key support levels are highlighted, with the dip viewed as a potential buying opportunity.
Google initially fell lower to kick off the trading session on Tuesday, but then filled that gap and actually rose above the place we jumped off from, only to turn around and fail again.
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This is the inherent weakness that we see in the market at the moment. Although, quite frankly, I don't think that the stock market's on the verge of something ugly. I just think we're in the middle of a pullback. We just don't have enough momentum to send it higher. That's fine. And Google will be a major component of the market move higher or lower for that matter, as there are a lot of bets being placed on artificial intelligence Google is a huge winner in that part of the world at the moment. That being said, artificial intelligence is not as profitable as people had originally thought. And therefore, some of these companies are coming back a bit from shooting straight up in the air.
Key Support Levels
I think at this point, the most obvious support level would be the $290 level, as it is an area that was previously resistance and features a 50-day EMA. If we were to break down below there, then we're starting to talk about $275. There is a gap that we may be targeting, and that would be closer to roughly $298 or so. That being filled could be a catalyst for the market to turn around.
But really, I think at this point, this isn't even a Google story. This is a story about the overall market just kind of slumping. It's not falling apart. It's just not exactly excitable at the moment. At the end of the year, we'll probably see some profit-taking, and maybe we've already started to see that. But we will also see people jumping into owning the correct names to show their clients, which quite often is known as the Santa Claus rally.
There's literally nothing on this chart that tells me that you should be short of Google at this point. Therefore, I think this dip ends up being a buying opportunity sooner rather than later.
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