Google Inc. (NASDAQ: GOOG) Tests Support Afterhours Says Market Timer Frank Kollar
July 18, 2008 (FinancialWire) (By Frank Kollar)
Shares of Google Inc. (NASDAQ: GOOG) declined some 8% in afterhours trading after the company said second-quarter earnings came in slightly below expectations. Earnings, excluding special items, were $4.63 a share. Analysts had estimated Google would post earnings excluding special items of $4.74 a share on $3.87 billion in net revenue.
Google was trading at $490.50 a share near the end of afterhours trading. This places Google shares just above critical Fib support at $485.73 a share.
A close below critical support would forecast a test of the prior correction lows at $413.62 a share in coming weeks, so trading over the next several days must hold above support or the current mild decline will become a substantial decline.
Traders should watch the $485 level. A decisive close below will likely be followed by considerably lower prices in coming weeks. Should support hold, we could see a resumption of the rally begun in April.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com) which offers market timing strategies for S&P and Nasdaq index fund traders, as well as bond, gold, small cap, sector, ETF and stock trading strategies.
Kollar’s research has shown that the financial markets are in tradable trends approximately 80 percent of the time. FibTimer strategies define trends and trade them in both advancing and declining markets. Caring nothing about what newscasters say or what the latest economic indicator predicts, trends are where the profits are, and that is where FibTimer is.
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