Review: Alphabet stocks came under tremendous pressure in the past week, falling from a previously marked new all-time high of USD 1,733 to well below the previous record high of USD 1,586 in July. At the same time, the value moved back to the lower limit of a steep upward trend channel that has dominated since mid-March. With this enormous wave of sales, the last part of the upward trend since the beginning of August was neutralized and a far-reaching, bearish signal was generated.
Outlook: The sell-off of the previous week was stopped at short notice by the buyers at the support at around USD 1,550. Nonetheless, Alphabet’s stock chart has clouded over and a new downtrend may even have established itself.
The short scenarios: Should the value not be able to rise again directly above the earlier support at USD 1,620, the lower trend line of the uptrend channel would also break, and thus the way for a continued fall to the earlier record high for USD 1,532 and below to the important support area at USD 1,474. At this point, the chances for a recovery of several days are good. If, on the other hand, the share breaks below the mark, a sale to USD 1,410 would be probable.
The long scenarios: If, on the other hand, the bulls can establish the value above the holding level at USD 1,587, a recovery to USD 1,620 should start. There, however, a continuation of the price slide would be expected. Above that, the bears should strike again in the USD 1,670 area. From a technical chart point of view, the sell-off would currently only end if it rose above USD 1,670.
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At a glance – Chart and news: Alphabet (Google)