Alphabet (NASDAQ 🙂 will appear shortly after the market closes. Analysts expect the mother of the Google search engine Google to report a profit per transaction of $ 37.3 billion from $ 10.53. The expected earnings per share is considerably lower than the $ 13.33 earnings per share of the same quarter last year, while the expected revenue for this quarter is considerably higher than the $ 31.15 billion posted last year. The company consistently outperformed profits last year, while sales increased with a profit of 11 quarters.
The trader's question should be whether Alphabet's profitable investments are sufficient to overshadow the risk of huge EU fines, after evaluating 1.49 billion euros ($ 1.7 billion) in March, the third anti-trust fine of the European Union in two years. , for blocking websites from using advertising brokers other than its own AdSense platform.
The answer, however, is not clear, nor is the graph of internet visitors. The shares (class C) have risen almost 23% since the new year and closed 0.7% on $ 1272.18 on Friday. Will they rise further or will they slide? With an uncertain view of both fundamental and technical analysis, we would advise to be cautious about running for now.
Alphabetical daily chart
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The stock price managed to climb out of a hole and make a profit on Friday. The trade pattern, however, was a hanging man, a set-up for a bearish game after pushing to a record close by.
The RSI fluctuated after reaching overbought levels in the mid-1970s. In addition, the RSI caused a negative divergence if it did not rise above its 21 March peak, while the price beat the highest of the same period by more than 3%.
This momentum weakness opens the potential for an RSI double-top on the daily chart, which has been able to drag the price below the uptrend since the December sale. The RSI double top may also give you a head start on another double top.
Alphabetical charts
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Last week's high price was $ 1,273.07, and stopped among the $ 1,273.89 the highest position ever posted in July. But the celebration of Friday's record closure could become a sad double top. While the weekly RSI exceeded that of July because it follows the closing, not intraday high, price, the moment meter diverged twice, decreased in May, until January, until July – in contrast to the price increase in that period
An amount above $ 1,300 would eliminate a possible double-top, but a fall below $ 1,200 would increase the bets for a double-top, of which the $ 990-level neckline has attracted considerable interest in the last two years shown.
That is why we recommend caution.
Trade Strategies
Conservative traders will wait for an amount above $ 1,300 or a drop below $ 900 for a clear trend.
Moderate traders may shorten a momentary reversal in that price range or go long after the correction after the $ 1,300 break.
Aggressive traders can enter into a contradictory short, provided they have a pre-written plan, including a loss that their account could withstand in what is expected to be a fleeting session.
Commercial language
Listing: $ 1,273
Stop loss: $ 1,275
Risk: $ 2
Target: $ 1,263
Reward: $ 10
Risk-Reward Ratio: 1: 5
