Chart of the Day: Don't Write Off Alphabet
The stock remains under strong resistance at $200 but not for long.
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Alphabet GOOGL has been frustrating to watch in the short term, but long term, it has been a delightful holding for our portfolio.
Recent trends have turned bullish, as we can see in the top pane of the chart below. The candles have been either blue or teal for the better part of three months. When you add in the strength of the secondary indicators, we can understand why there is excitement over this name. Specifically, look at the stochastics (momentum) in the fourth pane; money flow in the fifth pane; and, in the top pane, the Moving Average Convergence Divergence indicator crossover, which is imminent.
We can see the $200 level was rejected this week, but that might not be the case for much longer; a higher level might be in the offing.
A long base is often a prelude to a strong up move. In this chart we can see a few instances when this occurred, back in early December following a six week base, in late October following a base of nearly five weeks.
But this works both ways of course, with the stock getting hammered after a sideways/down move with weak indicators back in August.
But for now we see positive trends in the technicals, especially in volume, where big institutional buyers are present, active and buying the shares. Look for a move towards $220 on the horizon.
We like Alphabet in the Pro Portfolio and rate it a "one," buy at anytime.
Pro Portfolio is long GOOGL.
