2 Blue-Chip Stocks Are At Critical Levels

Shares of Alphabet Inc. GOOGL and Facebook, Inc. FB are under pressure this morning. If these two important levels hold, it will mean this is probably some normal profit-taking. If they break, a significant sell-off may follow.

For GOOGL it’s the $2,390 level. It was resistance in April and May, and then it converted into support in June.

This conversion from resistance to support happens because of seller’s remorse. Investors who sold GOOGL at $2,390 regret their decision after it trades higher. A number of them decide to buy it back, but only if they can get it for the same price they sold at.

This results in buy orders being placed at a level that had previously been resistance. If there are a sufficient number of these orders it will create support.