Google at 50% Fibonacci Price Retracement

This is a real time example of a stock at a Fibonacci retracement level, Google specifically.

Here's GOOG's price action for the last few months.  Here is the stock that rallied from the August low at $273.35 to a double top high of $321.28 followed by a decline into possible support at the Fibonacci 50% retracement level.

What gets my attention first is the double top.  The high at $321.28 (by the way, the first high is at $320.95) formed a large range reversal bar to the downside. The stock made a new high, had a large range for the day, and closed down relative to the open and the previous day's close. That type of price action is usually a good sign of a reversal.

Now I might be jumping the gun a little here, but what might be happening here is ...

... the stock might find support near the 50-62% Fibonacci retracement levels.

Take a look at today's price action.

Obviously today was a down day for Google.  Note that the low came in near the Fibonacci 62% retracement level.

And where is today's closing price? 

Very close to the 50% retracement level. Today's close is at $297.44 - 50% retracement level is at $297.32 - that's close.

So what's next?

I'll be watching the intraday price action to look for a low risk entry point to take a long position.

Hope that makes sense.

Trade well!!!

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