Alphabet Inc. - (GOOG) - September 19, 2022
Google parent Alphabet (GOOG) has been sliding down the rankings in the SIA S&P 100 Index Report for most of this year. GOOG exited the green zone in April and has been unable to return with a recent rebound faltering near the top of the yellow zone. The shares have since slumped back into the Red Unfavored Zone.
Alphabet (GOOG) staged a major breakdown last week. A long-term uptrend ended late last year in a rounded top punctuated by a bearish Rising Wedge breakdown. This year, the shares have been under distribution, establishing a new downtrend of lower highs. After consolidating through the summer, support gave way last week and the shares broke down to their lowest level in eighteen months, on a spike in volume, indicating increased selling pressure and the start of a new downleg that would be confirmed if the $100.00 round number fails to hold.
Additional potential downside support levels appear near $90.00, $80.00 and $70.00 on trend. Initial resistance appears at the 50-day moving average near $115.00.
A major breakdown is underway in Alphabet (GOOG) shares. After soaring through much of 2021, GOOG peaked late that year and has spent 2022 under distribution. Following an initial large selloff in April, the shares consolidated their losses through the late spring and summer. They even tried to launch back upward but bullish pattern completions quickly failed. Last week, GOOG broke down below $103.80 to complete a bearish Spread Triple Bottom pattern and signal the start of a new downleg.
The shares are approaching the $100.00 round number where another failure of support to kick in would confirm the start of a new downleg with next potential support near $85.15 where a horizontal count aligns with a previous breakout point. Initial resistance on a bounce appears near $112.35 based on a 3-box reversal that aligns with a previous low.
With its bearish SMAX score falling to 1, GOOG is exhibiting weakness against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.