Google Inc: Short-term stock chart indicators favour more gains for GOOG, resistance at 742

Details

Category: Share Price Drivers

Published on Thursday, 24 January 2013 10:11

Written by Will Peters

Google Inc (NASDAQ:GOOG) is tipped to enjoy further upside moves in the short-term.

This is courtesy of a host of bullish indicators inherent in the GOOG charts coming online following an impressive 5 pct gain registered yesterday; courtesy of analyst-beating earnings.

Trading over the next 2-6 week time-frame will be dictated by 9 bullish and 4 bearish indicators.

We see support lying at 682 and resistance found at 742.20.

The immediate trend remains up and the momentum is strong. Amongst the bearish indicators though we note the MACD is still giving off bearish signals; this a hangover from a negative divergence recorded on the 14th of the month.

However should yesterday's gains be confirmed today we could see the MACD fall in line with an upward momentum which has just built up as the latest price now trading higher than the price 10 bars ago.

Good results spurn the bulls onward

US stocks were boosted overnight as investors cheer US lawmakers in their decision to vote and suspend the federal debt limit temporarily.

This meant some time has been bought as opposed to having to deal with the spending cut issue and debt ceiling at the same time.  

"There were also good earnings from Google and IBM which helped to send the Dow higher to 13,780 a rise of 70 points for the session.   On the other hand, Apple missed its forecast sparking a sharp selloff in overnight trading which has meant that European indices are a little mixed on the open," says Angus Campbell at Capital Spreads, the spread betting firm.

Elsewhere: Gold prices edge lower as investor cash is diverted

Gold closed at $1684.1 yesterday, descending from the one month high it reached earlier in the week.  

This morning it is inching down as the global recovery has made riskier assets more attractive and so money pours into assets such as equities and takes the safe haven shine off the precious metal.  

"Investors are now being cautious as they wait for a Fed meeting next week to discuss future monetary policy and many feel as long as there isn't too much tightening, gold isn't likely to fall much in the short term," says Campbell.

Cameron to target tax evasion in Davos speech

David Cameron has called for greater international cooperation to crack down on tax evasion in a speech to the World Economic Forum.

The Prime Minister urged world leaders to work together to tackle problems with evasion and avoidance which allow multinational companies and the super-rich to keep their tax bills down.

The issue is a key focus for Mr Cameron during Britain's presidency of the G8 leading economic powers.

Downing Street said he would also use his speech at the Swiss ski resort Davos to talk about trade and transparency.

The World Economic Forum brings together top politicians from around the globe with leading business figures, economists and lobbyists.