The last time GOOGL missed on earnings was 18Q2, and the price action into that is very similar to that from December 2018. In both cases there is
- a rise before earnings of just over 30% in a clear parallel channel to around 1290
- a drop into a lower pitchfork channel, losing 10% to around 1155
- a 50% fib deadcat bounce to around 1220
- then a return to the original low around 985.
If this repeats, the trade is to sell 1220, stop 1240 for 985, which is nearly 12:1.
- a rise before earnings of just over 30% in a clear parallel channel to around 1290
- a drop into a lower pitchfork channel, losing 10% to around 1155
- a 50% fib deadcat bounce to around 1220
- then a return to the original low around 985.
If this repeats, the trade is to sell 1220, stop 1240 for 985, which is nearly 12:1.
David Atherton