GOOG remains in an uptrend, with its price potentially bouncing from the uptrend line started in September. This week I've got this on my list for a trade to the upside. Early entry would be a rise above $188 (a reclaim of the 4h 10EMA), though I am likely to wait for the reclaim of the 20EMA. I want to see high volume here and the market either flat or rising. Would be a no brainer if the NASDAQ and SPX break through their ATH. That momentum would be phenomenal for this play. I'd also consider here a stock buy for a longer play.
For the sake of objectivity, here are other things to note:
Key levels:
$183.53: This level aligns with the September uptrend line and will be an area to watch. A break below this could lead to a test of the 200SMA.
$192.09: The daily 50SMA and a prior consolidation zone coincide with this level. Reclaiming this area would strengthen the bullish case, suggesting the pullback may have concluded.
$202.51: A key resistance level and the site of the recent highs. A breakout above this could reinforce a bullish sentiment.
For a shorter term swing, I'd bring in the 4h chart and watch for a reclaim of its 20EMA, with high volume. This area will be close to the daily's 20EMA. I'd want to watch for confirmation of a move up by the price holding above the $192 level. For a longer term hold, I'd want the price to clear the weekly 10EMA, otherwise I'd count on the price retracing to the weekly's 50SMA.
Alternative scenarios:
Bearish: A decisive break below $183.53 would likely lead to a test of the daily 200SMA or weekly 50SMA. You can see that GOOG retraces to the weekly 50SMA quite often.
Neutral: Consolidation between $183 and $202 would indicate indecision and continued base-building.
For the sake of objectivity, here are other things to note:
Key levels:
$183.53: This level aligns with the September uptrend line and will be an area to watch. A break below this could lead to a test of the 200SMA.
$192.09: The daily 50SMA and a prior consolidation zone coincide with this level. Reclaiming this area would strengthen the bullish case, suggesting the pullback may have concluded.
$202.51: A key resistance level and the site of the recent highs. A breakout above this could reinforce a bullish sentiment.
For a shorter term swing, I'd bring in the 4h chart and watch for a reclaim of its 20EMA, with high volume. This area will be close to the daily's 20EMA. I'd want to watch for confirmation of a move up by the price holding above the $192 level. For a longer term hold, I'd want the price to clear the weekly 10EMA, otherwise I'd count on the price retracing to the weekly's 50SMA.
Alternative scenarios:
Bearish: A decisive break below $183.53 would likely lead to a test of the daily 200SMA or weekly 50SMA. You can see that GOOG retraces to the weekly 50SMA quite often.
Neutral: Consolidation between $183 and $202 would indicate indecision and continued base-building.
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