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.)
