GOOGL pops to highest close since September 4th
Alphabet Inc. (GOOGL) Technical Analysis Report for Oct 16, 2020 | by Techniquant Editorial Team
GOOGL ended the week 3.79% higher at 1567.70 after gaining $12.23 (0.79%) today, notably outperforming the Nasdaq 100 (-0.39%). Today's close at 1567.70 marks the highest recorded closing price since September 4th. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (GOOGL as at Oct 16, 2020):
Friday's trading range has been $18.48 (1.18%), that's far below the last trading month's daily average range of $32.05. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GOOGL.
Prices are trading close to the key technical resistance level at 1587.05 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 1588.42 where further buy stops might get activated. Selling could speed up should prices move below the close-by swing low at 1541.13 where further sell stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Alphabet. Out of 660 times, GOOGL closed higher 53.94% 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 59.70% with an average market move of 0.94%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are NFLX losing -2.06% and AMZN closing -1.98% lower. None of the markets managed to end the day in the green. Read more