- Google (Alphabet) has seen a massive gap to kick off the trading week, as the market may have gotten a little bit too far ahead of itself.
- Wall Street overall looks rather poor during the trading session on Tuesday, and Google will be one of the biggest companies that people watch.
- Because of this, it has an outsized effect on the psychology of the NASDAQ 100, and therefore a very important stock to be aware of what’s going on in it.
Technical Analysis
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The market gapped lower, reaching toward the $206 level before bouncing a bit. I’d also point out that there is a major trendline in the same neighborhood, so it does make a certain amount of sense that you would see support in this overall region. If the market were to turn around and bounce from here, and it did look like it trying to, filling the gap from the gap lower is the most important thing. If we can break above the $215 level, then it’s likely that the market could go looking at the $220 level.
Keep in mind that a lot of people out there are looking at this 45° angle trend as something worth paying attention to because it is somewhat measured and sustainable. That being said, sooner or later we will have to get a certain amount of pullback in order to offer a little bit of value for those who have missed out on the trade to get involved. It’s worth noting that the ex-date for dividends is next Monday, so you may see some traders looking to get involved, although the dividend is just $0.21 at the moment.
The 50 Day EMA sits just below the $195 level, and it looks as if the $200 level is also going to offer a bit of support as well. I do believe that Google, or Alphabet, will eventually find buyers to get involved in this market. I expect to see a little bit of choppy and sideways action between now and Friday when we get the jobs report out of America. We will be hanging on the results of that announcement. While I still believe in the upward trajectory of this stock, I recognize we might be just a little bit stretched.
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