Most of the Nasdaq took a beating lately, but not Alphabet.
The parent of Google and YouTube has been standing tall since its bullish quarterly numbers on February 2. The report planted the stock above $2,000, and it’s held that bullish price gap since. Apple, Amazon, Microsoft, Facebook, Tesla, Nvidia have all slipped to their 50-day simple moving averages (SMAs) – or lower. GOOGL hasn’t even come close.
The candlesticks are especially interesting because they show how buyers defended $2,000. Notice the two attempts below that level on February 23 and March 3 were unsuccessful. It also made a higher closing low on March 8, despite the broader Nasdaq-100 closing at its lowest price in over three months that same day.
Think about that for a second: Given the spike in bond yields, GOOGL had every excuse to go back and test its previous highs below $1,950. But it didn’t. Instead, it formed a high and tight consolidation pattern above the previous range.
At least two other features stand out. First, the narrow Bollinger Band Width creates the potential for expansion if prices start to run.
Second, GOOGL may be starting to stair-step from one level to the next. It initially held $1,400 in September. Then $1,700 in December and January and now $2,000.
Once again, the chart seems to be telling a powerful fundamental story.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
The parent of Google and YouTube has been standing tall since its bullish quarterly numbers on February 2. The report planted the stock above $2,000, and it’s held that bullish price gap since. Apple, Amazon, Microsoft, Facebook, Tesla, Nvidia have all slipped to their 50-day simple moving averages (SMAs) – or lower. GOOGL hasn’t even come close.
The candlesticks are especially interesting because they show how buyers defended $2,000. Notice the two attempts below that level on February 23 and March 3 were unsuccessful. It also made a higher closing low on March 8, despite the broader Nasdaq-100 closing at its lowest price in over three months that same day.
Think about that for a second: Given the spike in bond yields, GOOGL had every excuse to go back and test its previous highs below $1,950. But it didn’t. Instead, it formed a high and tight consolidation pattern above the previous range.
At least two other features stand out. First, the narrow Bollinger Band Width creates the potential for expansion if prices start to run.
Second, GOOGL may be starting to stair-step from one level to the next. It initially held $1,400 in September. Then $1,700 in December and January and now $2,000.
Once again, the chart seems to be telling a powerful fundamental story.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
