After disappointing results last night, Alphabet Inc ( GOOG ) lost 7.7% of its value and again struggling today (-2%). They say a picture say a thousand words, and this one is no different. With a possible developing, a bounce could possibly drive the share price higher, but I must admit, the risk seems to me to be on the downside.
We already saw a break and close below the 50-day moving average ($1189), with the 200-day moving average ($1140) being the most likely next resistance. $GOOG was trading at extreme overbought levels, which just again show that when a share is price to perfection (high/expensive P/E’s), they should get it right all the time, otherwise the punishment could be severe.
A breakthrough the 200-day moving average, could see us test the $1080 levels. I will monitor the major diagonal closely, with major resistance currently around the $1020. Last mentioned will be my stop-loss levels if you’re a trader with a short-term long position.
Thomson Reuters consensus still have a target price of $1340 on the share, but after last nights miss, I recon we could see that figure being revised downward. Still believe got some great long-term possibilities, but will personally wait for better levels.