GOOG: AlphaBet A Defining Day Ahead AlphaBet GOOG Defining Day Ahead
This turned a little tricky on Friday. A mean/invisible gap on the 15 minute chart and not even there on the 60 minute completely arrested the decline fully 8 bucks above the 1180.85 target line.
The stop was then lowered to 1201 to protect what was left of the profit from any shorts from the 1206.28 line - the original gap line.
The mofo then rallied right back up to kiss the gap line again and left a little spike at the line before falling back again.
Looking at the chart in isolation this still looks bearish and it should fall away to make a proper test of the 1180.85 line.
But it's going to move on news and right now in very near term hopes of a peace deal with China on trade could help GOOG gap up on the open and to jump the 1206.28 line in one bound.
If so it has to hold up from there on any retest.
Only then will Goog (and markets too) be out of clear and present danger.
That looks best case scenario from here...
As the chart currently stands Goog will remain vulnerable whilst trapped below the 1206.28 gap line.
Whilst unable to break and hold above here then markets should also find difficulty in advancing further from this point.
It's still weak whilst trapped inside the channel shown on the chart.
Maybe it will open just around the gap line and maybe twitch either side for a little while - which way it breaks from there will be most likely decide the direction of major markets too.
But on an overall view, this ended last weak looking weak still. Its only way out from here is to gap up and hold above that key gap line on retests.
Right now GOOG looks like it will continue to be the bellweather for markets in general, the canary in the mine.
Hopefully it will help to determine direction for Nasdaq and SandP and other majors and be as helpful as a confirming signal as it has tended to be in the past.
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