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Google stock analysis & trade idea after earnings

  • Google reported earnings last night. It earnings results were not that positive. Still, it seems that market was ready to absorb a more disappointing earnings report from Google, following the SNAP 40% crash
  • The fact that GOOG was slightly positive (hovering around a 3% rise after-hours, following the earning announcement) supports the idea that it’s apx. 32.5% drop from the all time high (at the end of Jan 2021) to the recent low (at the end of May 2022) is enough.
  • The dip is over for Google in 2022, most likely. This does not mean that we will see a huge, uninterrupted rally for Alphabet’s stock from here. More likely, we may witness some ‘trading range’ price action for the stock till the end of the year (leg up, leg down, and some partial retracement up of the 32% drop since the ATH)
  • A Snapchat is not like a Google. The market is differentiating between a fair valued stock and another that still needs to sell off. That is why two stocks of two companies that live in a similar online advertising space, can react so differently, one (SNAP) crashing 40% after its earnings report, and the other (GOOG) keeping its head well above water. This may be a general hint by Mister Market, that good companies have corrected enough, and lesser ones still have some fat to shed off
  • So, how does one play Google now? The following Google technical analysis video provides one opinion of why and where to go Long
  • The technical analysis for GOOG below presents the Anchored VWAP on the weekly timeframe, set from an important point in the chart, the low of the COVID crash
  • Anchored VWAP modifies VWAP. It binds computations to a trader-chosen price bar. It’s comparable to VWAP since it weights price and volume. Like VWAP, it identifies chart support and resistance
  • The Google stock technical analysis on the daily timeframe introduces a regression channel, a type of technical indicator that could show when to buy or sell. The linear regression channel, also known as the raff regression channel, is an indicator with three lines that is based on standard deviation. When the trend is up and the indicator goes up, this is called a “buy signal.”
  • Furthermore, Google stock chart shows a diagnal resistance and a 20EMA line on the weekly.
  • An exponential moving average (EMA) is a calculation of the average price over a certain amount of time that gives more weight to the most recent price data. This makes it respond more quickly to changes in price. On the weekly timeframe, a good amount of traders and trading algorithms are watching this technical indicator on the Google price chart

We hope you will benefit from our Google stock analysis and trade idea. Trade GOOG at your own risk. Visit ForexLive for  technical analysis  and interesting perspectives.