GOOG pushes through key technical resistance level
Alphabet Inc. (GOOG) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GOOG finished Thursday at 1161.75 gaining $59.26 (5.38%), slightly underperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 1148.90, the market confirmed its breakout through the prior session high after trading up to $21.07 above it intraday.
Daily Candlestick Chart (GOOG as at Mar 26, 2020):
Thursday's trading range has been $76.44 (6.88%), that's above the last trading month's daily average range of $68.06. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GOOG.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1157.97 (now S1), which is likely to act as support going forward. The last time this happened on March 19th, GOOG actually lost -3.85% on the following trading day. Prices are trading close to the key technical resistance level at 1219.76 (R1). Alphabet found buyers again today around 1093.53 for the third trading day in a row after having found demand at 1086.01 in the previous session and at 1090.62 two days ago.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Alphabet. Out of 115 times, GOOG closed higher 56.52% 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 61.74% with an average market move of 0.59%.