Alphabet has two habits: it makes significant double tops
quite often (3 times in this 2 year bull run so far) and when it
creates a gap at season it usually comes back to fill
that same gap around 4-5 months later - and when does this it
tends to do it twice, creating double bottoms as well as
double tops. This is the one stock amonst the FAANGs that
displays this kind of repeat behaviour so clearly, with one
glaring exception, shown at the blue arrow. The biggest
correction in the run is 15% in early 2016. Taking 15% off the
highs = 1000. And 20% is 940, which coincides with fixed
support at 942 and the lower supporting parallel. Perhaps in a
panic it may spike this low but looking at past behaviour it
should find support again at 987 by the close if it does fall this
far first. Major suppoort exists at 904-900. It will take a close
below here to derail this train.
Google aptly re-named itself, becoming the world's biggest Alpha Bet in the process.
So goes Google, so go world markets.
It was expected to double bottom at 987 line but in the event the low at 982. If you went fishing down there it's now just approaching key resistance at the 1024 line.
Close out here and only get long again once 1025 is broken above with stops 6 lower.
This is the most vulnerable point here and it cn come off again until it can break and hold above 1025 - and then it has to break above the upper dynamic to start attracting more buyers still from there