Sunday, September 23, 2018

GOOGL Alphabet (Google) Monthly Chart; Overbot; Rising Wedge; Negative Divergence Developing; Upper Band Violation

Since August is in the rearview mirror and Autumn has started, it is a good time to take  look at the FAANG (FB, AAPL, AMZN, NFLX, GOOGL) monthly stock charts. Facebook has rolled over after placing highs in February and July. Apple continues enjoying upside momo. Amazon is the strongest of the FAANG stocks and will be last to place its long-term top. Netflix wobbles at it hangs around near record highs. Alphabet (Google) is the weakest besides Facebook.

FB has likely placed its long-term top. GOOGL will likely print its multi-month and perhaps multi-year top now through November. NFLX will likely top-out next in October-November. AAPL will place its long-term top in October-December likely before the year ends. Amazon will be last of the FAANG's to be defanged likely placing THE top in the October-January time frame.

For the GOOGL monthly chart above, the red lines show the overbot conditions, rising wedge for this year and negative divergence for the indicators (sans MACD) that creates the slight spank down off the top a month ago. The long and strong MACD line wants another matching or higher high in price so GOOGL likely has one small spurt of upside life remaining before it rolls over. The long-term orange rising wedge is ominous.

The MACD line and money flow continue ramping higher providing more juice for price. Thus, after this pullback due to the negative divergence with the other indicators, Google will come back up again for a matching or higher high. At that time, say October, if the MACD line rolls over with neggie d, THE top is in for mighty Alphabet (Google).

The upper band is violated so the middle band at 1036.66, and rising, is on the table. It is about time that Alphabet showed respect to the middle band, the 20-mth MA, since the last time was 2015. The RSI and stochastics are overbot agreeable to a pullback in price.The ADX still shows a strong trend at 51 that the bears will need to roll over. 

Price needs to back off the highs like the red candlestick now shows for September. Then GOOGL should rally higher again to satisfy the MACD line. If the neggie d appears with the MACD as the new price high prints, THE top will be in. For Alphabet, it looks like October-November is a good guess for THE multi-month and multi-year top for GOOGL. If you have enjoyed huge multi-year returns from Alphabet, keep scaling out as time moves along since THE top is approaching quickly. Take one-fourth of the long position off every two weeks going forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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