GOOG finds buyers around 1507.34 for the forth day in a row
Alphabet Inc. (GOOG) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
GOOG finished the week 2.81% higher at 1520.74 after gaining $6.08 (0.4%) today on low volume, slightly outperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 1520.74 marks the highest recorded closing price ever. Trading up to $8.26 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GOOG as at Feb 14, 2020):
Friday's trading range has been $13.40 (0.88%), that's far below the last trading month's daily average range of $24.72. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GOOG. Prices continued to consolidate within a tight trading range between 1504.60 and 1527.18 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 1504.60 (S1). The share was bought again around 1507.34 after having seen lows at 1504.60, 1508.11 and 1505.64 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on October 23, 2019, GOOG gained 0.15% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 1527.18 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 1504.60 where further sell stops could get triggered.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous three Lows" stand out. Its common bullish interpretation has been confirmed for Alphabet. Out of 17 times, GOOG closed higher 58.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 76.47% with an average market move of 0.91%.