• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Alphabet's Stock Has Yet to Reach a Good Bottom

Is there evidence of new and aggressive buying in GOOGL?
By BRUCE KAMICH
Jan 11, 2023 | 09:35 AM EST

Alphabet ( GOOGL) has been frustrating buyers since it turned lower in...
 
In my last review of GOOGL on December 21 I wrote that " The charts and indicators of GOOGL suggest the November low should be tested and probably broken in the weeks ahead. Avoid the long side of GOOGL." 
 
Shares of GOOGL have remained weak and are close to making a new 52-week low so let's visit the charts again.
 
In this updated daily bar chart of GOOGL, below, I continue to see a weak looking picture. Prices trade below the declining 50-day moving average line and below the declining 200-day line. The trading volume jumped temporarily in late October/early November but has since returned to "normal."
 
A period of trading with heavier than normal volume would be encouraging as it would suggest new investor interest. The On-Balance-Volume (OBV) line remains in a decline from April. The Moving Average Convergence Divergence (MACD) oscillator is bearish but trying to make a cover shorts buy signal. 
 
 
In this weekly Japanese candlestick chart of GOOGL, below, I see a mixed picture. Prices are still in a longer-term downward trend with prices below the negatively sloped 40-week moving average line. Some to the recent candles show lower shadows telling me that some traders are rejecting the lows but that does not seem to improved the indicators.
 
The weekly OBV line remains in a downtrend. The MACD oscillator is bearish and a long, long way from a buy signal.  
 
 
 
In this daily Point and Figure chart of GOOGL, below, I see that the software is projecting a downside price target of $81. 
 
 
 
In this weekly Point and Figure chart of GOOGL, below, a potential price target of $67 is being projected. 
 
 
Bottom line strategy: I have yet to see growing evidence of new and aggressive buying in GOOGL. Continue to avoid the long side of GOOGL for now as a better buying opportunity may present itself in the next couple of months. Stay tuned. 

(Alphabet is a holding in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells GOOGL? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Software & Services | Technology | Advertising

More from Investing

Traders Face the Fed Facts

James "Rev Shark" DePorre
Feb 8, 2023 4:26 PM EST

We've seen some denial about the level of Fed hawkishness, and the action now reflects a more realistic view of the economic situation.

Further Price Weakness Lies Ahead for Zoom Video

Bruce Kamich
Feb 8, 2023 2:35 PM EST

Here's what traders should avoid.

Is the Nasdaq Giving Us Bearish Clues Again?

Bruce Kamich
Feb 8, 2023 12:32 PM EST

Keep your head on a swivel with the index and Apple stock.

Here Are 2 Reasonably Valued Stocks Made for the 'Compression'

Bret Jensen
Feb 8, 2023 11:30 AM EST

These companies managed to produce solid results in a difficult fourth quarter.

Snap-On Is Close to a Major Upside Breakout

Bruce Kamich
Feb 8, 2023 11:18 AM EST

Here's what aggressive traders could do now.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:20 AM EST PETER TCHIR

    Powell, 0DTE Options and How I View This Market Right Now

    Fed Chair Powell is saying all the things I think ...
  • 08:22 AM EST REAL MONEY

    LIVE EVENT: Bruce Kamich and Todd Campbell Share Their Stock Market Insights

    This Monday, Feb. 6 at 12 p.m., our very own exper...
  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login