[05 July 2024]
Today, StockCharts365.com has taken a closer look at one of the world's largest companies, Alphabet Inc. (GOOGL) and has found that the stock may be a very good short candidate at the current price level of around USD 190.00.
Read more about this in the technical analysis of Alphabet Inc. Class A (ticker on Nasdaq: GOOGL) below here.
First, a little about Alphabet Inc. Class A (ticker on Nasdaq: GOOGL)
Alphabet is a holding company. Internet media giant Google is a wholly owned subsidiary.
Google services account for nearly 90% of Alphabet's revenue, of which more than 85% is from online ads.
Other Google services revenue is from sales of apps and content on Google Play and YouTube, as well as sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home.
Google's cloud computing offerings account for a bit more than 10% of total Alphabet revenue. Alphabet’s moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), provide faster internet access (Google Fiber), enable self-driving cars (Waymo), and more.
For more information about the company, visit their website here:
Technical Analysis of Alphabet Inc. Class A (ticker on Nasdaq: GOOGL)
Technical Analysis of Alphabet Inc. Class A (ticker on Nasdaq: GOOGL):
Now and then, yes, you can be tempted to believe that things can grow into the sky, but when it comes to shares (perhaps especially when it comes to shares) they very rarely do, or rather they never do.
So what now about Google, or Alphabet Inc. as they are now called (ticker on Nasdaq: GOOGL), yes this stock might grow into the sky now?
Hardly, in that case it will be the first time in history that a share grows into the sky, and every upward trend sooner or later ends, whether we are talking about short-term or long-term upward trends, they all have an end.
Now the end may have come for this time and for this upward trend as far as Google, or Alphabet A (ticker on Nasdaq: GOOGL) is concerned.
The share is now all the way up to the resistance level at the upper trend line in an uptrend, and has tested this resistance several times recently, without managing to break above it.
As we know, there are always new corrections and new tests of support levels, and for example down towards the very important 200 day moving average.
Another such correction down to test the 200-day moving average support and lower trendline in the uptrend now seems likely based on technical analysis of Alphabet Inc (GOOGL).
History has a tendency, as we know, to repeat itself, and we do not have to go back further than a couple of years (cf. chart) and we see that even the Alphabet share does not grow forever and ever and into the sky.
There are occasional corrections there too, believe it or not, but even one of the world's largest companies does not grow straight into the sky.
The overall technical picture for Alphabet Inc. (ticker on Nasdaq: GOOGL) indicates that we can now face a correction down towards around USD 155.00 - 160.00 within the next 1-3 months.
In any case, nobody should be very surprised if that were to happen, and based on what the technical picture for GOOGL now signals about the further development of the stock in the short term.
GOOGL can thus be a good short candidate at the current price level, and with a price target for a short position in GOOGL around USD 160.00.
The share price for GOOGL is at the time of writing here at USD 190.26.
NB! Remember to have read and understood the disclaimer.
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