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GOOG: Now What?

Published 02/04/2016, 11:53 PM
Updated 07/09/2023, 06:31 AM

Alphabet Inc C (O:GOOG) rocketed in reaction to its February 1 earnings beat, which spiked the stock to an all-time high at 823.74.

That is the good news.

The bad (technical) news is that the new high was not confirmed by my intermediate-term momentum gauges, with the price structure above Google (O:GOOGL)'s June 2012 upper-channel boundary line at 772.

The combination is (was) a prescription for a powerful, downside reversal into a correction.

Although GOOG has reversed sharply beneath the upper-channel boundary, it remains vulnerable to pressing lower to probe key support between 680 and its Jan 20 low at 673.26, which must contain the weakness to avert a full-fledged test of its rising 200-Day EMA, now at 662.01.

Daily Alphabet GOOG Chart

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