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Googleanalysis
Alphabet (GOOGL) Stock Drops 10% – What's Behind the Decline?Alphabet (GOOGL) Stock Drops 10% – What's Behind the Decline?
As the stock chart for Alphabet (GOOGL) shows, on 4 February, the share price reached a historic high above $205. However, despite surpassing analysts’ expectations, GOOGL shares dropped sharply after the earnings report was released:
→ Earnings per share: actual = $2.15, forecast = $2.12
→ Gross revenue: actual = $187.8 billion, forecast = $187.3 billion
As a result, GOOGL's current price is approximately 10% below its all-time high. Market sentiment may have turned negative due to several factors:
→ Cloud revenue fell short of expectations, raising concerns about Alphabet’s ability to compete in the rapidly evolving AI sector.
→ Weaker-than-expected advertising revenue from Google, Alphabet’s core business. While advertising revenue grew by 10.6% to $72.46 billion in Q4 2024, analysts had anticipated a 12% increase.
→ Alphabet announced plans to significantly increase capital expenditures next year to around $75 billion, prompting questions about the impact on depreciation and profitability.
Additionally, news that China has launched an antitrust investigation into Alphabet—potentially in response to tariffs imposed on Chinese goods by the Trump administration—may have weighed on the stock price.
Technical Analysis of Alphabet (GOOGL)
GOOGL remains within an upward trend channel (marked in blue on the chart), with the price having pulled back to key support levels, including:
→ The lower boundary of this trend channel
→ The $180.90 level, marking the top of the bullish gap from 10 December
→ The psychological level of $180, which acted as resistance in late 2024 (indicated by arrows)
This suggests that the downward momentum caused by the earnings report could slow down or even reverse, meaning the current price action may be a pullback within the prevailing uptrend.
Should You Buy GOOGL Stock Now?
According to a report from The Smart Investor via Yahoo, investors should not be overly concerned, as:
→ Alphabet's strong cash flow will allow it to fund its planned $75 billion in capital investments without issue.
→ The company’s leadership stated that demand for its AI-driven products currently exceeds supply.
Meanwhile, analysts surveyed by TipRanks believe Alphabet can overcome its challenges:
→ 27 out of 37 analysts recommend buying GOOGL, with none advising to sell.
→ The 12-month average price target for GOOGL is $215.85.
Overall, while short-term volatility remains, long-term prospects for Alphabet appear solid. Investors with a longer time horizon may see this dip as a buying opportunity.
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Google: Room to Head HigherFor the past two months, GOOGL has been stuck in a sluggish sideways phase, with even its latest breakout attempt quickly sold off. During the magenta wave , we still expect a new high, though a direct transition into the subsequent wave remains technically possible. In our 33% likely alternative scenario, we would have to reckon with a significantly delayed continuation of the overarching upward cycle. In this case, GOOGL would still be working through the (intermediate) correction of the green wave alt. , which would bottom below the support at $147.22.
GOOGLE $GOOG | AD DOLLARS & AI POWER, GOOGLE'S EARNINGS Feb4'25GOOGLE NASDAQ:GOOG | AD DOLLARS & AI POWER, GOOGLE'S EARNINGS ALPHABET'S EARNINGS Feb4'25
Google Zones:
Google BUY/LONG ZONE (GREEN): $199.00 - $215.00
Google DO NOT TRADE/DNT ZONE (WHITE): $193.50 - $199.00
Google SELL/SHORT ZONE (RED): $180.00 - $193.50
Google Trends:
Google Weekly Trend: Bullish
Google Daily Trend: Bullish
Google 4H Trend: Bullish
Google 1H Trend: Bullish
NASDAQ:GOOG earnings are set for Tuesday, Feb 4 (post-market), will the earnings report fuel further upside, or is a pullback on the horizon? All of my timeframes on my indicator show bullish trends. NASDAQ:GOOG has been in a strong uptrend since early December, gaining ~15% since Dec 9. Leading up to earnings, price formed an ascending pattern, breaking out past resistance on Jan 30. My bullish zone projects a ~6% upside, while the bearish zone mirrors this range.
I am linking my previous NASDAQ:GOOG analysis, from nearly a year ago.
This is what I would personally look at before entering trades, everything is subject to change on a daily basis and as I analyze different timeframes and ideas.
ENTERTAINMENT PURPOSES ONLY, NOT FINANCIAL ADVICE!
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Google: There We Go!Since late October, the Alphabet stock has been rejected twice at the $181.61 resistance. This Monday, though, it achieved an impulsive rally above this critical level. This advance aligns perfectly with our primary scenario by propelling the magenta wave further upward, and we expect additional gains as this movement progresses. However, the development of the ongoing upward impulse would be significantly delayed in our 33% likely alternative scenario. In this case, Alphabet’s stock would still be working on the corrective green wave alt. and sell off below the support at $147.22.
Google: At the Resistance!Driven by bullish momentum in the tech sector, Google’s stock has recently gained as expected. The resistance at $181.61 has presented a key hurdle in recent weeks. However, our primary wave count indicates that this level will be surpassed next during the ongoing magenta wave . This bullish impulse should conclude significantly higher in the chart, thereby setting a new all-time high. Conversely, there’s a 38% chance for our alternative scenario, which suggests an extended wave alt. correction.
Google - Textbook break and retest!NASDAQ:GOOGL might retest the previous breakout level before continuing the uptrend.
The entire chart of Alphabet (Google) is green, yet I do expect a (short term) move lower first. For almost a decade, Alphabet has been retesting and respecting a major support trendline before then breaking out of the ascending triangle formation just a couple of months ago. I just expect Alphabet to retrace back to the breakout level before then creating new all time highs.
Levels to watch: $150
Keep your long term vision,
Philip - BasicTrading
Antitrust Threat Looms Over Google, Shares Could Plummet by 10%!Google's dominance might be ending. A U.S. judge has decided that the company's control over search is unfair competition. This could lead to Alphabet, Google's parent company, being split up and a major change in online advertising. A new era of search could be coming, as the internet's main player may soon lose its power.
Technical Analysis
The share price has surged by over 190% since hitting its lowest point during the Covid-19 crash.
Following a previous peak of $152, the stock experienced a significant drop and subsequently entered a prolonged phase of consolidation.
After approximately 2.5 years of this price stabilization, the stock finally broke through its prior resistance in April 2024.
This significant breakthrough resulted in an impressive surge, propelled the price to a new all-time high of $193.
However, the stock price faced considerable resistance at that level, resulted in a decline and eventually breaking down of its upward-trending parallel channel.
The stock is likely to experience a sharp decline of about 10%, finding support somewhere between $132 and $131.
Alphabet - It is just a textbook company!NASDAQ:GOOGL has been one of the best performing stocks over the previous decade.
The most profitable stocks are the ones which trade under the radar. And Alphabet (Google) is definitely one of these stocks which is simply trending higher, providing textbook trading opportunities and not a "hype" stock. Slow and steady wins the race, but you have to be careful that you don't miss your chances. After a retest of the breakout level, you can enter a long trade.
Levels to watch: $150
Keep your long term vision,
Philip - BasicTrading
GOOGL : Target 200$ based on Fib ProjectionGOOGL : Target 200$ based on Fib Projection
Previous High of 153$ to 154$ made during Jan end 2024 is overtaken and a new high is made. With this, it looks attractive to target the Fib Projection of 1.78 at 200$
Daily TF :
for understanding the smaller TF than weekly
GOOGLE $GOOG - Feb. 26th, 2024GOOGLE NASDAQ:GOOG - Feb. 26th, 2024
BUY/LONG ZONE (GREEN): $144.50 - $154.80
DO NOT TRADE/DNT ZONE (WHITE): $139.60 - $144.50
SELL/SHORT ZONE (RED): $131.15 - $139.60
Weekly: Bullish
Daily: DNT
4H: Bearish
The zone around $140 has been supported to the bullish side three times since Jan. 17th, 2024. Currently price is back at the zone after creating bearish structure on the 4h timeframe with strong downside momentum. Price has respected the level at $146.10 to the bearish side and broke below the $144.50 on the daily timeframe which is the start of the DNT zone and the potential start of entry into the bearish zone.
Bulls can look for rejections up from the $140 area or breaks above the $144 level/structure (daily timeframe). Bears can look for continuation below the $140 area or a pullback and rejection of the $144 level (daily timeframe).
This is what I would personally look at before entering trades, everything is subject to change on a daily basis and as I analyze different timeframes and ideas.
ENTERTAINMENT PURPOSES ONLY, NOT FINANCIAL ADVICE!