Google (GOOGL) shares broke to new swing lows today after a gap-down and strong sell-swing.
Price broke through a rising trendline and triangle pattern, triggering additional selling pressure.
Here’s the intraday breakdown and structure – we’ll also put this in context on the Daily Chart:
Price fell shy of the $800 per share high in April and plunged $100 lower to bounce twice through May.
As we’ll see on the Daily Chart, a “Bear Flag” or rising parallel trendline developed along with a Symmetrical Triangle (yellow highlight).
Price broke under both of these patterns and sprung free of the consolidation, triggering a wave of selling.
Here’s the Daily Chart and larger structure for Google (GOOGL) share prices:
The $800 per share level served as major resistance and buyers haven’t been able to boost price above it.
A sharp collapse in February plunged price under $700, and sellers took control also in April with a similar $100 point drop.
Our little “flag” or rising parallel trendline (blue) developed and sellers overpowered buyers this week to force a breakdown.
Stop-losses are being triggered as price collapses back toward $700.
If you’re trading Google here, focus on the simple $700 level and how rallies have developed there.
If instead we see shares under $700 and $690 into next week, we could be on the cusp of additional downside pressure.
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Corey Rosenbloom, CMT
Afraid to Trade.com
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Published at Afraid to Trade.com Blog
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