Google (GOOG: sentiment, chart, options) is in retreat mode this afternoon, slipping more than $20 to trade in the upper reaches of the 350 region. The reason for the drop comes from Stifel Nicolaus. The brokerage cut GOOG's price target to $525 from $600 after reducing its financial projections for the company. The lowered projections were prompted by the sharp slowdown in business activity thanks to the current credit crisis. The brokerage also attributed the move to the negative revenue impact of foreign currency moves relative to the stronger U.S. dollar.

GOOG is acting like it has found some support at the $350 level, as it did in 2006. That said, the stock continues to face significant resistance from its 10-week moving average. The search giant has not topped this descending trendline since the middle of June. Granted, this trendline is in the 445 region, so the stock could consolidate for a while. In addition, the equity's 10-month moving average recently completed a bearish cross with its 20-month counterpart, suggesting that further downside could be in the cards. If the stock closes below 350, the next potential level of support could be the 300 level.