I’ve seen a lot of chatter in recent days pick up on Google (GOOGL) among traders.
So I thought I would provide some of my own thoughts on GOOGL as it pertains to its technical matters + analysis.
First, it is range-bound. and has been since early May when it had a huge gap up. Since then it has essentially been stuck between the $910’s and $1000.
Right now it has plopped itself right in the middle of the range, which usually wouldn’t offer many clues as to its outlook and direction. But here, you do have some technicals coming together to offer a modest trading opportunity. First, you have a base breakout, and for now, I wouldn’t put much hope of it getting through the $1,000/share.
Over the last four days, it has held those gains that were achieved on the breakout in the form of a bull flag.
So for me, to trade this, I would have to put my stop-loss either below the lows of the past four trading sessions, or below the base breakout. It’s tight, but there is little reason to hold this stock if it can’t maintain that bull flag, or the base breakout. Once it gets to the channel highs, see if it can breakout, if it sees a sharp selling intraday, then go ahead and book the gains and move on. ]
Here’s the technicals I’m talking about!