GOOG pushes through key technical resistance level
Alphabet Inc. (GOOG) Technical Analysis Report for Mar 31, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GOOG finished the month -13.18% lower at 1162.81 after edging higher $15.99 (1.39%) today on low volume, notably outperforming the Nasdaq 100 (-0.96%). Closing above Monday's high at 1151.63, the stock confirmed its breakout through the previous session high after trading up to $23.67 above it intraday.
Daily Candlestick Chart (GOOG as at Mar 31, 2020):
Tuesday's trading range has been $37.16 (3.24%), that's far below the last trading month's daily average range of $64.30. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOOG. Prices continued to consolidate within a tight trading range between 1086.01 and 1175.30 where it has been caught now for the whole last trading week.
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 26th, GOOG actually lost -4.39% on the following trading day. After spiking up to 1175.30 during the day, Alphabet found resistance at the 20-day moving average at 1170.71.
Though the market 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 four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Alphabet. Out of 239 times, GOOG closed higher 56.49% 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 57.74% with an average market move of 0.95%.