GOOGL Falls To Key Support Level

Alphabet, Inc. is a holding company, which engages in the business of acquisition and operation of different companies. It operates through the Google and Other Bets segments. The Google segment includes its main Internet products such as ads, Android, Chrome, hardware, Google Cloud, Google Maps, Google Play, Search, and YouTube. The Other Bets segment consists of businesses such as Access, Calico, CapitalG, GV, Verily, Waymo, and X.

Take a look at the 1-year chart of Advanced (NASDAQ: GOOGL) below with added notations…

Chart of GOOGL provided by TradingView

GOOGL has formed a key level of support at the $2500 level (blue) over the past few months. The stock looks like it may be making its way back down to that mark and possibly rally off of it once again. However, if the support were to break, lower prices will likely follow for GOOGL.

The Tale of the Tape: GOOGL has key support at $2500. A trader could enter a long position at or around $2500 with a stop placed under the level. If the stock were to break below the support, a short position could be entered instead.

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!

Good luck!

Christian Tharp, CMT 

 

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