We said last week that Google was sitting on a key support level and that if it were to break that level, it could fall a lot further. Well, we saw this week it broke the key level and fell to new lows for the year, closing Friday at $96.15.
Those with a five to ten-year time horizon have to love buying Google at $96.15. However, those with a one-year time horizon still need to be careful of it falling further.
Very short term the indices are oversold and so they could bounce. If that happens, Google’s stock price is likely to rise with it. However, the market is so volatile at the moment, and so many world leaders are making critical decisions that it is only a guess what will happen in the market next week.
Google has already fallen so far as to have reached its next support level which is anywhere between $96.81 and $87.20. So chances are it call fall further to test out more of that support level, but it also could rise from here since the support level has already been hit.
The indices were already oversold in the very short term but continued to decline because new UK prime minister Liz Truss decided to cut taxes on the rich. The market didn’t like that choice by Truss which means the market overall thinks her decisions will cause a rise in inflation. When inflation does begin to drop though, the markets will rise very quickly. And you have to be diligent because the large wealth holders who run funds will buy in quickly when they hear the news. Markets are forward-looking for at least three to six months. This makes it difficult for the average retail investor to perform as well as the fund managers since they don’t have as many reliable sources of information.
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