Technical Analysis – Alphabet stock is buoyant ahead of earnings
April 24, 2024 3:27 pm
Alphabet shares surge to consecutive all-time highs
Momentum indicators are approaching overbought zones
This poses asymmetric risks for the upcoming earnings report
Alphabet’s shares have been in a steady uptrend since October 2022, posting a fresh all-time high of 161.65 on April 12. Despite a minor downside correction, the price has been advancing again ahead of the Q1 earnings announcement on Thursday.
To the upside, stronger-than-expected financials could propel the price towards the recent record high of 161.55. Surging to uncharted waters, the stock may challenge 167.81, which is the 123.6% Fibonacci extension of the 151.67-83.27 downleg. Even higher, the 138.2% Fibo of 177.80 could come under scrutiny.
On the flipside, in the case of a pullback, the 2021 peak of 151.67 could act as the first line of defence. Should that barricade fail, the price might slide towards the 78.6% Fibo of 137.03. A violation of that zone might pave the way for the 61.8% Fibo of 125.54.
In brief, Alphabet’s stock is trading within breathing distance of its all-time high ahead of the Q1 earnings report on April 25. Nevertheless, risks are asymmetrically tilted to the downside as the momentum indicators are flagging overbought conditions.
Alphabet shares surge to consecutive all-time highs
Momentum indicators are approaching overbought zones
This poses asymmetric risks for the upcoming earnings report
Alphabet’s shares have been in a steady uptrend since October 2022, posting a fresh all-time high of 161.65 on April 12. Despite a minor downside correction, the price has been advancing again ahead of the Q1 earnings announcement on Thursday.
To the upside, stronger-than-expected financials could propel the price towards the recent record high of 161.55. Surging to uncharted waters, the stock may challenge 167.81, which is the 123.6% Fibonacci extension of the 151.67-83.27 downleg. Even higher, the 138.2% Fibo of 177.80 could come under scrutiny.
On the flipside, in the case of a pullback, the 2021 peak of 151.67 could act as the first line of defence. Should that barricade fail, the price might slide towards the 78.6% Fibo of 137.03. A violation of that zone might pave the way for the 61.8% Fibo of 125.54.
In brief, Alphabet’s stock is trading within breathing distance of its all-time high ahead of the Q1 earnings report on April 25. Nevertheless, risks are asymmetrically tilted to the downside as the momentum indicators are flagging overbought conditions.
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