Chart of the Day: Here's How Alphabet Looks Ahead of Earnings
Let's look at the chart for clues as to where the stock might be headed.
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A big week of tech earnings kicks off Tuesday after the close when Alphabet GOOGL reports its third-quarter results. The company beat nicely last time around but was drilled following some weaker guidance. That report and the subsequent actions taken by the Dept of Justice (antitrust) and other entities dealt a major blow to the uptrend.
Since bottoming in early August, Alphabet stock has been moving sideways, a flat base that will eventually move sharply in one direction or the other. As technical guru Louise Yamada says, "the longer the base the higher the space," meaning a long, drawn-out base for GOOGL means a large move up or down is imminent.
The indicators are relatively flat as well, the Moving Average Convergence Divergence (MACD) and chop index (pane 3) indicate flattening moving averages and no trend whatsoever. Yet, stochastics (momentum) is starting to build and money flow is positive, so there is potential.
Volume trends are bearish however, so the bulls need to see a few strong up sessions with good turnover. Perhaps following earnings Thursday night that will come to pass.
We like Alphabet and rate it a One in TheStreet Pro Portfolio.
More Pro Portfolio:
- We're Adding Shares and Upping Our Price Target on This Holding Amid Record Backlog
- Weekly Roundup: Multiple Points of Confirmation for Our Portfolio Positioning
- AI Generates News: A Look at the Headlines That Speak to Our Stocks
At the time of publication, TheStreet Pro Portfolio was long GOOGL.
