GOOG pops to highest close since February 24th
Alphabet Inc. (GOOG) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GOOG ended the week 2.71% higher at 1410.42 after gaining $7.62 (0.54%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 1410.42 marks the highest recorded closing price since February 24th. 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 May 22, 2020):
Friday's trading range has been $20.74 (1.48%), that's far below the last trading month's daily average range of $32.59. Weekly volatility is also lower, being 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 1387.25 and 1415.49 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on May 11th, GOOG lost -1.96% on the following trading day.
Prices are trading close to the key technical resistance level at 1416.53 (R1). Alphabet ran into sellers again today around 1412.76 for the third trading day in a row after having found sellers at 1415.49 in the prior session and at 1410.42 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 1415.49 where further buy stops might get activated. As prices are trading close to May's high at 1416.53, upside momentum could accelerate should the market mark new highs for the month.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Alphabet. Out of 77 times, GOOG closed higher 54.55% 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 64.94% with an average market move of 1.03%.