I’m seeing signs of life in the US stock market these days, but will the rally on GOOG last?
Better keep your eyes on these nearby upside barriers if you’re trading these shares!
Alphabet Inc (GOOG): 4-hour
Alphabet shares have been pacing back and forth inside a range for the past three months, finding support around $107 and resistance close to $120.
Price is inching closer to testing the top of the range, which happens to be right smack in line with other upside barriers.
As you can see from the chart above, GOOG has been cruising below a descending trend line that’s been holding since February this year. That’s a pretty strong ceiling, if you ask me!
At the same time, the resistance zone also coincides with the 200 SMA dynamic inflection point. The faster-moving 100 SMA is below this potential resistance, confirming that the downtrend is likely to carry on.
To top it off, Stochastic is closing in on the overbought region to suggest that buyers could use a break soon. In that case, sellers could take the upper hand and bring GOOG back down to the bottom of the short-term range again.
Recall that Google’s Q2 earnings figures fell short of expectations, chalking up back-to-back quarterly misses as advertising sales slowed.
Even so, some analysts have pointed out that the company has managed to maintain steady revenues in a challenging market, particularly in its cloud services.
With that, better keep an eye out for bullish candles closing above the resistance zones since these might be early reversal signals!
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