Followers | 686 |
Posts | 142814 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
![](https://investorshub.advfn.com/uicon/35728.png?cb=1539773763)
Tuesday, May 09, 2023 1:56:35 PM
By: Jayanthi Gopalakrishnan | May 9, 2023
Running scans as part of your daily trading routine can reveal surprising trading candidates. Alphabet, Inc. stock is well-loved among investors and a massive component of the S&P 500 index. But GOOGL has struggled. Will it break through a critical resistance level?
After running a scan identifying large-cap stocks, using a StockCharts Technical Ranking (SCTR) score crossing above 76 as a criterion, one of the names that appeared in the results was Alphabet, Inc. (GOOGL). Let's take a closer look at the chart of GOOGL (see chart below).
![](http://d.stockcharts.com/img/articles/2023/05/09/86da76d9-4fbb-4951-a168-f0034ea59b52.jpg)
CHART 1: WILL GOOGL BREAK ABOVE $108 AND MOVE HIGHER? That remains to be seen, but the stock is showing strength, which could work in its favor.
Chart source: StockCharts.com. For educational purposes only.
After falling to a low in early November 2022, the stock has struggled to resume its uptrend. It's been trading pretty much sideways since then, having a tough time breaking above the $108 level (blue-dashed line). Every time GOOGL went above $108, it quickly went lower. Will its +108 last more than a day this time?
Zeroing In: Daily Price Action
If you look at the last few times the stock price hit the $108 level, the SCTR level was below 76, except on March 23, when price didn't quite reach the $108 level. A cross above the 76 SCYR level indicates the stock is gaining strength and, if it crosses above 78 and 80, that's an indication of a continuation of the strength. When the scan was run, the SCTR for the stock crossed above 80, although it pulled back a bit during the trading day. It's still above 76, though.
Another point to note during previous $108 breaches: GOOGL's relative performance against the S&P 500 index ($SPX) was lagging. It still is, but this time, there's a sort of triangle pattern forming (see lower chart panel). If GOOGL's relative strength with respect to the S&P 500 continues to increase, the stock could get closer to its next resistance level.
A Weekly Perspective
If you look at the weekly chart, the next resistance level could be the 100-week moving average, or $118.64 (green dashed line). A follow-through from that level could take the stock as high as its November 2021 high.
![](http://d.stockcharts.com/img/articles/2023/05/09/e5b796b7-c68e-47b0-8c89-ed4dbfbe1695.jpg)
CHART 2: WEEKLY CHART OF GOOGL. The stock could trade up toward its 100-week moving average or it could fall towards the bottom of its most recent trading range or to its 50-week moving average.
Chart source: StockCharts.com. For educational purposes only.
A reversal in the SCTR score and underperformance against the S&P 500 index could send the stock lower, either towards the bottom of its most recent trading range at around $104 or to its 50-week moving average.
How to Trade GOOGL
• If the stock price stays above $108 for more than a day and there's upside follow-through, the SCTR score stays above the 70 level, and the stock's performance against the benchmark S&P 500 continues to strengthen, this stock has the potential to move higher. If these conditions are met, you could set an entry point slightly above $108.
• On the flip side, if price slides back below $108, the SCTR score crosses below 70, and relative strength falters, GOOGL could resume its sideways choppiness. If losing $4.00 on the trade is acceptable, you could place a stop-loss at the $104 level, the bottom of the stock's most recent trading range. Or you could place a stop at or just below the 50-week moving average (red line).
Read Full Story »»»
![](http://studentaid.gov/universal-navigation/assets/us_flag_small.png)
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent GOOG News
- MongoDB and Google Cloud Collaborate to Optimize Gemini Code Assist for Developers Building Applications on MongoDB • PR Newswire (US) • 05/02/2024 10:00:00 AM
- Google Terminates Employees Over Protests Against Israeli Government Contract • IH Market News • 04/18/2024 12:20:50 PM
- Apple in Talks with Google to Integrate Gemini AI into iPhone, Shaping a New Era in Tech Collaboration • IH Market News • 03/19/2024 10:39:54 AM
- Futures Pointing To Continued Weakness On Wall Street • IH Market News • 03/05/2024 02:03:27 PM
- U.S. Stocks May Lack Direction Following Yesterday’s Modest Pullback • IH Market News • 02/27/2024 02:14:46 PM
- FTC to Inquire to Microsoft's, Google's, Amazon's AI Partnerships • Dow Jones News • 01/25/2024 06:12:00 PM
- Lüm Mobile Taps Alepo's TelcoBot.ai for Generative AI Customer Service • PR Newswire (US) • 01/25/2024 04:00:00 PM
- Alphabet on Track for Record High Close -- Data Talk • Dow Jones News • 01/25/2024 03:45:00 PM
- Google to Settle Chip Patent Lawsuit With Singular Computing • Dow Jones News • 01/24/2024 07:15:00 PM
- Alphabet Division X Cutting Dozens of Staff, Bloomberg Reports • Dow Jones News • 01/22/2024 04:32:00 PM
- Alphabet on Track for Highest Close Since February 2022 -- Data Talk • Dow Jones News • 01/22/2024 03:36:00 PM
- AST SpaceMobile Gets Investments From AT&T, Google • Dow Jones News • 01/18/2024 10:00:00 PM
- Google to Invest $1 Billion to Build UK Data Center • Dow Jones News • 01/18/2024 06:51:00 PM
- Applied Materials, Google to Collaborate on AR Technology • Dow Jones News • 01/09/2024 01:12:00 PM
- Alphabet on Track for Highest Close Since April 2022 -- Data Talk • Dow Jones News • 12/20/2023 03:49:00 PM
- Trending: Alphabet to Pay $700 Million in Google Play Settlement • Dow Jones News • 12/19/2023 08:13:00 PM
- Trending: Epic Games Wins Antitrust Lawsuit Against Google • Dow Jones News • 12/12/2023 03:50:00 PM
- Alphabet on Pace for Largest Percent Increase Since July -- Data Talk • Dow Jones News • 12/07/2023 03:22:00 PM
- Google, Canada Reach Deal Over Planned Online News Law • Dow Jones News • 11/29/2023 08:05:00 PM
- Google, Canadian Government Reach Deal on Online News Act, CBC Reports • Dow Jones News • 11/29/2023 05:23:00 PM
- VMware and Google Cloud announce planned PostgreSQL-compatible Database Solution for traditional and generative AI applications on VMware Cloud Foundation • Business Wire • 11/07/2023 08:05:00 AM
- Match Group, Google Reach Binding Term Sheet in Legal Battle • Dow Jones News • 10/31/2023 09:29:00 PM
- Alphabet Ends Down 9.5%, Sees Largest Percent Decrease Since March 2020 -- Data Talk Update • Dow Jones News • 10/25/2023 08:59:00 PM
- Alphabet Down Over 8%, on Pace for Largest Percent Decrease in Almost a Year -- Data Talk • Dow Jones News • 10/25/2023 02:48:00 PM
- Stocks to Watch: Microsoft, Alphabet, Stride • Dow Jones News • 10/25/2023 12:16:00 AM
Greenlite Ventures Completes Agreement with No Limit Technology • GRNL • Jul 19, 2024 10:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • NBRI • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM
Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation • KGKG • Jul 17, 2024 9:00 AM
Avant Technologies Welcomes Back Former CEO with Eye Toward Future Growth and Expansion • AVAI • Jul 17, 2024 8:00 AM