GOOGL dominated by bulls lifting the market higher throughout the day
Alphabet Inc. (GOOGL) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GOOGL finished the week 4.16% higher at 1632.98 after gaining $26.32 (1.64%) today, significantly outperforming the Nasdaq 100 (0.25%). Today's close at 1632.98 marks the highest recorded closing price since September 2nd. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (GOOGL as at Oct 23, 2020):
Friday's trading range has been $22.10 (1.37%), that's below the last trading month's daily average range of $33.33. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOOGL.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish Short Candle showed up on October 9th, GOOGL gained 3.58% on the following trading day.
Buyers managed to take out the key technical resistance level at 1615.14 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 1652.79 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Hikkake Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alphabet. Out of 126 times, GOOGL closed higher 55.56% 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 59.52% with an average market move of 0.78%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are FB gaining 2.4% and AMZN closing 0.88% higher. On the flipside the worst performer has been AAPL closing -0.61% lower. Read more