GOOGL runs into sellers again around 1493.97
Alphabet Inc. (GOOGL) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
GOOGL finished the week -0.9% lower at 1466.17 after losing $18.52 (-1.25%) today, slightly underperforming the Nasdaq 100 (-0.82%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 1480.32, the market confirmed its breakout through the prior session low after trading up to $17.00 below it intraday.
Daily Candlestick Chart (GOOGL as at Jan 24, 2020):
Friday's trading range has been $30.65 (2.05%), that's far above the last trading month's daily average range of $18.83. 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 strongly higher than usual for GOOGL.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Even with a strong opening Alphabet closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move above 1493.50 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 1493.97. The last time this happened on January 15th, GOOGL actually gained 0.76% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alphabet. Out of 424 times, GOOGL closed higher 53.77% 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 60.61% with an average market move of 1.21%.
With three out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are AMZN losing -1.22% and FB closing -0.83% lower. On the flipside the best performer has been NFLX closing 1.02% higher. Read more