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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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.