Alphabet - Earnings report sends shockwaves through the market
Yesterday, Alphabet sent shockwaves through the stock market after the close when it published its earnings report for the third quarter. The revenue was up 6% from the year earlier, and earnings per share stood at 1.06 USD, missing analysts' estimates. This earnings report is yet another line to confirm our thesis about the market progressing into the second stage of the bear market, with companies warning about the slowdown and failing to deliver expectations.
We expect this trend to continue during the next earning season and slowly lead the market into the third phase of the bear market. The same view is supported by the fact that the FED is about to increase interest rates next week and further tighten economic conditions, making a primary trend reversal very unlikely.
Therefore, we believe the reality will soon creep back into the market, and those who were buying the dip in hopes of catching a bottom will fulfill our prophecy once they sell those shares back to the market. As a result, we expect Alphabet to continue lower with the rest of the stock market.
Illustration 1.01
Illustration 1.01 displays the daily chart of the Alphabet stock. The yellow arrow points to the price retracement toward the 50-day SMA, representing a strong correction; the same retracement can be observed on the daily chart of Apple, Microsoft, General Motors, etc.
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bullish. DM+ and DM- are also bullish. Overall, the daily time frame is bullish; however, the data does not reflect the drop after earnings. Therefore, we expect the daily time frame to turn bearish today.
Illustration 1.02
Illustration 1.02 shows simple support and resistance levels for Alphabet stock on the daily graph.
Technical analysis - weekly time frame
RSI, MACD, and Stochastic are slightly bullish. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
We expect this trend to continue during the next earning season and slowly lead the market into the third phase of the bear market. The same view is supported by the fact that the FED is about to increase interest rates next week and further tighten economic conditions, making a primary trend reversal very unlikely.
Therefore, we believe the reality will soon creep back into the market, and those who were buying the dip in hopes of catching a bottom will fulfill our prophecy once they sell those shares back to the market. As a result, we expect Alphabet to continue lower with the rest of the stock market.
Illustration 1.01
Illustration 1.01 displays the daily chart of the Alphabet stock. The yellow arrow points to the price retracement toward the 50-day SMA, representing a strong correction; the same retracement can be observed on the daily chart of Apple, Microsoft, General Motors, etc.
Technical analysis - daily time frame
RSI, MACD, and Stochastic are all bullish. DM+ and DM- are also bullish. Overall, the daily time frame is bullish; however, the data does not reflect the drop after earnings. Therefore, we expect the daily time frame to turn bearish today.
Illustration 1.02
Illustration 1.02 shows simple support and resistance levels for Alphabet stock on the daily graph.
Technical analysis - weekly time frame
RSI, MACD, and Stochastic are slightly bullish. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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