One Week Later, Google Shares Are Falling

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. Google Inc GOOG shares were trading lower by $11.00 at $538 in Thursday's session. With no relevant news out on the issue, let's examine the technicals since it released Q1 results last week. Last Thursday (April 23), the company missed analyst estimates for EPS ($6.88 vs. $7.31 estimates) and revenue ($14.4 billion vs. $14.61 billion estimates). The Street actually applauded the results and lifted the issue as high as $571.14 before falling back to settle at $565.06. The $570 area had been the area of resistance in late March. Back on March 24, it peaked at $574.59 and on March 25 at $572.26. It had a series of four highs in a row from March 4 to March 9 between $570.27 and $577.91. Google has now retreated to where it was trading ahead of its Q1 results. The day before the release, it bottomed at $540.23 and rallied to settle at $547. In today's session, it has declined to $536.72 and has not been able to reclaim the $540 level.