Resistance: 1,318 – 1,370, Support: 1,253- 1,180
• Nasdaq had a lowest close in more than 5-years yesterday, closing marginally below its Nov lows at 1,295.48. This triangle formation breakdown is bearish. As with Dow, the Nasdaq is also in its fifth and final wave downwards to complete this major downtrend that begun in Oct 2007.
• MACD dipped further into the negative territory while RSI has yet to reach the oversold zone, both suggesting that there is more weakness ahead in the near term.
• Any potential rebound is likely to be met with fierce selling pressure. Resistance is seen at 1,318 and 1,370 while support is at 1,253, 1,212 and 1,180. These support levels could be tested in the coming weeks.
Google Inc (GOOG US; US$308.57) – SELL
• The uptrend from the Nov lows appears to have ended after Thursday’s bearish breakdown. The stock closed below its US$312.76 channel support (now turned-resistance), which suggests that the longer term downtrend is about to resume. The confirmation would be a fall below US$282.75, its Jan low.
• Indicators have stayed weak. Its MACD has just moved into the negative territory while its RSI is falling into the oversold region. The RSI has yet to reach oversold levels, suggesting that there is still room on the downside.
• Investors ought to sell on strength as the stock could now ease to test the US$282.75 support. If this support breaks, Google could be heading back to its Nov lows of US$247.30. Following resistance is seen at US$325.00 and its 30-day SMA at US$341.00.
Intel Corp (INTC US; US$12.41) – SELL
• The stock appears to be testing its descending triangle’s support at US$12.00. A break below this support is bearish and would suggest that the longer term downtrend has resumed. It could ease to US$9.80-10.00 if the said support breaks.
• In the short term, the stock could see a minor rebound but the rebound would likely be weak. More downside would follow as both its MACD and RSI have remained negative. The stock is also trading below its 30-day SMA.
• Any rebound towards its resistance at US$13.31, its 30-day SMA could be seen as a chance to sell.
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