GOOGL rises to highest close since February 24th
Alphabet Inc. (GOOGL) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GOOGL ended the week 2.93% higher at 1413.24 after gaining $6.49 (0.46%) today, slightly outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 1413.24 marks the highest recorded closing price since February 24th. Trading up to $7.90 lower after the open, Alphabet managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GOOGL as at May 22, 2020):
Friday's trading range has been $21.00 (1.5%), that's far below the last trading month's daily average range of $32.75. 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 GOOGL. Prices continued to consolidate within a tight trading range between 1387.42 and 1417.00 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on May 11th, GOOGL lost -2.02% on the following trading day.
Unable to break through the key technical resistance level at 1415.53 (R1), the share closed below it after spiking up to 1417.00 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. The stock ran into sellers again today around 1417.00 for the third trading day in a row after having found sellers at 1416.46 in the previous session and at 1412.03 two days ago.
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 OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alphabet. Out of 77 times, GOOGL closed higher 55.84% 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 59.74% with an average market move of 0.70%.
With two of the other FAANG Stocks closing higher and two closing lower today, the winners of the day are FB surging 1.52% and AAPL gaining 0.64%. On the flipside the worst performers have been NFLX closing -1.59% lower and AMZN losing -0.4%. Read more