GOOGL unable to break through key resistance level
Alphabet Inc. (GOOGL) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GOOGL ended the month -1.08% lower at 1418.05 after gaining $20.88 (1.49%) today, slightly underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 1398.00, the market confirmed its breakout through the prior session high after trading up to $26.00 above it intraday.
Daily Candlestick Chart (GOOGL as at Jun 30, 2020):
Tuesday's trading range has been $37.07 (2.65%), that's slightly above the last trading month's daily average range of $35.14. 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 GOOGL.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 1421.61 (R1), Alphabet closed below it after spiking up to 1424.00 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on June 24th, GOOGL actually gained 0.59% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Alphabet. Out of 592 times, GOOGL closed higher 50.84% 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 59.12% 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 AMZN gaining 2.93% and FB closing 2.91% higher. None of the markets ended the day in the red. Read more