Nasdaq: Google Shares, A Bearish Signal?

Moving Averages has the ability to smooth price data to filter out the noise of the daily ups and downs price movements. In our 280-Day moving average for Google stock (Nasdaq: GOOG), it shows 2 dips of the price near the moving average as indicated by the 2 circles. From 2006 to early 2008, the price stayed above this moving average. As such, this moving average served as a support for this period of time. However, we now see a "crossover" in early 2008, indicating a bearish move. The significance of this crossover is that prices will not rise above this trendline unless a "bullish" crossover happens (i.e. this line is a resistance line for the price).

The next few months ahead will see this stock below the 280-day moving average, indicating a sell/short when it approaches the moving average.