SIACharts Logo

Commentary >

Alphabet Inc - (GOOG) - October 27, 2022

Google parent Alphabet (GOOG) dropped 9.6% yesterday after reporting disappointing earnings. This selloff accelerated a downward trend which had already been in place for the stock within the SIA S&P 100 Index Report, taking it deeper into the Red Unfavored Zone. Yesterday, GOOG finished in 71st place, down 15 positions on the day and down 8 spots in the last month.

About a year ago, a long-term uptrend in Alphabet (GOOG) shares peaked near the $150 level. Since then, the shares have been under consistent distribution, steadily declining in a Falling Channel of lower highs and lower lows. Recently, the shares broke down below the big $100 round number. The subsequent rebound failed short of resistance at the 50-day average and yesterday, GOOG broke down to a new low on trend, falling to its lowest level since January of 2021.

Next potential downside support appears in the $80.00 to $85.00 range based on previous support and resistance points, then closer to $70.00. Initial upside resistance appears near the $100.00 round number.

Since peaking in a bull trap back in November of 2021, Alphabet (GOOG) shares have been under distribution. Over the last year, GOOG has been steadily retreating down a Falling Staircase of sharp selloffs followed by consolidation at lower levels. The most recent downturn started back in August and continued with a bearish Spread Triple Bottom breakdown last month. Recently, a rebound attempt failed at a 3-box reversal and yesterday, the shares broke down again, with a bearish Double Bottom signaling the start of a new downleg.

Vertical and horizontal counts suggest next potential downside support may appear near $77.10 then $71.25 on trend. Initial resistance appears near the $100.00 round number, then $103.80 based on a 3-box reversal.

With a bearish SMAX score of 1, GOOG is exhibiting weakness relative to 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.

Related Posts

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.