Google shares are on the verge of breaking a key technical support level, which could mean at least a 6 percent drop from current levels, according to traders. The chart is reflecting the decision by the world’s largest search engine to go to battle with three mighty forces: China, Microsoft and Steve Jobs.
Yesterday, the stock closed at $531.64, less than $7 away from the $525 level where it bottomed two times earlier this year and at the end of 2009. If the stock breaches that so-called support, $500 could be the next stop as the previous buyers at that level become sellers.
“The decision to leave the China market is akin to ‘New Coke’,” said Jon Najarian, co-founder of OptionMonster.com and TradeMonster.com. “They owned the search market and then they blinked. Add in the ‘Nexus One’ phone and the move against Microsoft to give away free software and they are simply picking fights with the wrong guys.”Page 1 of 3 | Next Page