Alphabet Inc., through its subsidiaries, provides online advertising services in the United States and internationally. The company offers performance and brand advertising services.
Take a look at the 1-year chart of Alphabet Inc (NASDAQ: GOOGL) below with my added notations:
There are many levels for traders to watch on GOOGL. The first is the key level of $1120 (blue) that has been tested as both resistance and support over the past few months, including Monday of this week. Next, the stock is rising within a very clear up-channel (green), one in which its support was also just tested. Lastly, GOOGL has a major 52-week high resistance at $1200 (red).
The Tale of the Tape: GOOGL has three different technical levels in which both long and short trades can be made off of. The most recent bounce could be sending the stock back to its $1200 resistance level.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT