GOOGL breaks below Friday's low
Alphabet Inc. (GOOGL) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
GOOGL finished Monday at 1584.29 tanking $48.69 (-2.98%), strongly underperforming the Nasdaq 100 (-1.61%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on September 3rd, GOOGL lost -2.96% on the following trading day. Closing below Friday's low at 1611.91, Alphabet confirmed its breakout through the previous session low after trading up to $44.13 below it intraday.
Daily Candlestick Chart (GOOGL as at Oct 26, 2020):
Monday's trading range has been $61.80 (3.83%), that's far above the last trading month's daily average range of $35.09. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOOGL.
After trading down to 1567.78 earlier during the day, the stock bounced off the key technical support level at 1576.36 (S1). The failure to close below the support could increase that levels significance as support going forward. Unable to break through the key technical resistance level at 1615.14 (R1), the market closed below it after spiking up to 1629.58 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 1634.12 in the prior session, the share ran into sellers again around the same price level today, missing to move higher than 1629.58.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Alphabet. Out of 422 times, GOOGL closed higher 55.21% 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 59.95% with an average market move of 1.06%.
With two of the other FAANG Stocks closing higher and two closing lower today, the winners of the day are AMZN surging 0.08% and AAPL gaining 0.01%. On the flipside the worst performers have been FB closing -2.7% lower and NFLX losing -0.01%. Read more