GOOGL (Alphabet) to reach 112 by the end of August
Background
GOOGL has been trading in a channel between resistance level 119.68 and support between 105 and 102 since April 27th. On August 8th, GOOGL broke through the resistance level slightly before heading lower the next day, and it appeared that it was on it's way down to touch the support level for a 5th time in 3 months. But a surprise rally on August 10th sent the price towards the next resistance level of 122.85.
Analysis
While this appears to be a sustained rally, there have been 3 bearish key reversals in August. These are the first bearish reversals since May during which bullish reversals dominated (at least 6). This would indicate that a possible bearish move is imminent if the price bounces off the 122.85 resistance level in the next couple of trading sessions. The price could reach 112.50 by then end of the month.
What is a Key Reversal?
A bullish key reversal is when the price makes a new low, reverses, and closes near or on the high. A bearish key reversal is when the price makes a new high, reverses, and closes on or near the low.
Disclaimer: I could be completely wrong. I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
GOOGL has been trading in a channel between resistance level 119.68 and support between 105 and 102 since April 27th. On August 8th, GOOGL broke through the resistance level slightly before heading lower the next day, and it appeared that it was on it's way down to touch the support level for a 5th time in 3 months. But a surprise rally on August 10th sent the price towards the next resistance level of 122.85.
Analysis
While this appears to be a sustained rally, there have been 3 bearish key reversals in August. These are the first bearish reversals since May during which bullish reversals dominated (at least 6). This would indicate that a possible bearish move is imminent if the price bounces off the 122.85 resistance level in the next couple of trading sessions. The price could reach 112.50 by then end of the month.
What is a Key Reversal?
A bullish key reversal is when the price makes a new low, reverses, and closes near or on the high. A bearish key reversal is when the price makes a new high, reverses, and closes on or near the low.
Disclaimer: I could be completely wrong. I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
Comment:
I should have mentioned that the lines at 112 and 107 were my targets for August 26 and September 2, those dates being the vertical lines.
Trade closed: target reached
