GOOGL finds buyers around 1092.03 for the third day in a row
Alphabet Inc. (GOOGL) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GOOGL ended Thursday at 1162.92 gaining $61.30 (5.56%), slightly underperforming the Nasdaq 100 (5.72%). Closing above Wednesday's high at 1146.17, the share confirmed its breakout through the previous session high after trading up to $25.20 above it intraday.
Daily Candlestick Chart (GOOGL as at Mar 26, 2020):
Thursday's trading range has been $79.34 (7.12%), that's above the last trading month's daily average range of $68.36. 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 GOOGL.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1152.61 (now S1), which is likely to act as support going forward. The last time this happened on March 19th, GOOGL actually lost -3.91% on the following trading day. Prices are trading close to the key technical resistance level at 1214.40 (R1). Alphabet found buyers again today around 1092.03 for the third trading day in a row after having found demand at 1083.01 in the prior session and at 1086.43 two days ago.
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 eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous two Lows" stand out. Its common bullish interpretation has been confirmed for Alphabet. Out of 107 times, GOOGL closed higher 57.94% 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 60.75% with an average market move of 0.92%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are NFLX gaining 6.02% and AAPL closing 5.26% higher. None of the markets ended the day in the red. Read more