Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Alphabet Inc., GOOGL stock price was down approximately 6% in the pre-open session after the release of quarterly earnings. The stock price is likely to open a gap down near $130.00 which will erode the monthly gains.
Previously, Alphabet Inc. stock displayed a bullish continuation pattern and rose upward by forming higher high swings.
GOOGL stock price holds the 50-day EMA support and showcases an uptrend. But it trades near to the 52-week high which is now turned out as a supply zone.
The technical chart of the GOOGL stock is bullish on multiple time frames. Any short-term retracement toward support levels getting easily absorbed shows the dominance of the bulls.
However, it will be interesting to see whether the buyers are able to absorb the selling pressure in today’s gap down or not.
Alphabet Inc. released the quarterly earnings on October 24, 2023, after the market close. It reported an EPS of 1.55 and revenue of $76.693 Billion.
The company beats the EPS estimates by 6.58% and quarterly estimates by 0.97%. Despite that, the stock price reacted negatively and showed signs of a bearish trend reversal.
GOOGL Stock Price Reversing From 52-Week High?
GOOGL stock price lost the bullish momentum near its 52-week high and reversed down. The news behind the downfall is quarterly earnings so sellers may grab this opportunity to drag the price further down.
However, Google stock price might open a gap down near $130.00 which is near its swing low. Buyers will try their best to absorb the sell-off and halt the downfall.
Till Alphabet’s stock price sustains above $128.42 the buyers will remain active and try to give bounce. The analysis suggests GOOGL stock price is entering a correction phase and more downside is possible.
Alphabet Stock Price Turning Bearish
Alphabet’s stock price performed well in 2023 and up by 55.76%. It generated more than expected returns for its long-term investors. So, in the recent correction, the investors might get an opportunity to accumulate more at a cheaper rate.
If the GOOGL stock price drops below $128.42 the confirmation of the bearish trend reversal will come. Moreover, it will trigger another round of sell-off and prices may decline to $118.00.
Conclusion
Alphabet Inc., GOOGL stock price was down 6% (approx.) in the pre-open tick. The stock reacted negatively after earnings and is likely to open a gap down near $130.00.
The analysis suggests that Alphabet’s stock price is in the initial phase of correction and more downside is possible in the coming months.
Technical levels
- Resistance levels: $142.50 and $150.00
- Support levels: $128.42 and $118.61
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/25/googl-stock-correction-begin-in-alphabet-stock-after-earnings/