GOOG pops to highest close since June 10th
Alphabet Inc. (GOOG) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GOOG ended Thursday at 1464.70 gaining $26.66 (1.85%), strongly outperforming the Nasdaq 100 (0.61%) ahead of tomorrow's Independence Day OBS market holiday. Today's close at 1464.70 marks the highest recorded closing price since June 10th.
Daily Candlestick Chart (GOOG as at Jul 02, 2020):
Thursday's trading range has been $36.53 (2.52%), that's slightly above the last trading month's daily average range of $35.98. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GOOG.
Unable to break through the key technical resistance level at 1474.26 (R1), Alphabet closed below it after spiking up to 1482.95 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 24th, GOOG actually gained 0.65% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
With prices trading close to this year's high at 1532.11, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alphabet. Out of 302 times, GOOG closed higher 57.62% 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 56.95% with an average market move of 0.45%.