GOOGLE BEARISH DIVERGENCE: SHORT TERM DECLINE?

Since Google’s last earnings hike a bearish divergence signal has emerged on the 4H chart.

This divergence was accompanied with a massive sell-off after the earnings hike, resulting in a 4% decline. Large sell-offs like this could indicate a trend reversal.

The 30 October high has on its turn shaped a wedge for us which we can act on in the coming months. The lower trendline has been holding strong for three times already, indicating its function as a strong support for the future. Expect a reversal of the down trend when the price arrives in the green marked area.