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Alphabet (GOOGLE) – Alphabet Inc. Get a report (GOOG) – Alphabet Inc. Get a report He didn’t do all that good marketing.
In February, the company reported strong earnings, announced a big buyback plan and declared a 20-for-1 stock dividend. About a month later, tech and online retail giant Amazon. (AMZN) – Amazon.com Inc. Get a report Announced a stock split.
Amazon stock had a great rally before the 20-for-1 stock split, but has struggled since.
As for Google parent Alphabet’s stock, the shares rallied about a week before the split, which began trading as a split on July 18.
The stock dividend doesn’t seem to be the trigger some investors were hoping for. That didn’t help Snap. (SNAP) – Snap Inc. Get a part A report It reported surprisingly disappointing quarterly results, falling nearly 40% in one session.
As Alphabet prepares to report earnings after the close on Tuesday, investors may be a little worried about a disappointing result.
We have seen the stock fall earlier in the event; It has declined in each of the past two weeks and fell slightly on July 25. Let’s see what the chart tells us.
Stock trading before earnings
Weekly Alphabet Stock Chart.
Chart courtesy of TrendSpider.com
Scroll to continue.
Alphabet stock is at a critical support level, which comes in at around $105. The 2022 low sits below this zone, at $101.88, and right next to the monthly VWAP scale.
As shown in the chart above, Alphabet stock it was Also creating a series of highs and lows, corrupt technical progress. That’s the support (blue line) where the shares are moving higher, though that level has since failed.
Additionally, clear resistance has been seen near $120, with Alphabet currently below all short- and medium-term moving averages.
The downside is clear: $100 to $105 is a must-hold support.
If Alphabet stock breaks below the $105 detection level, the 2022 low, the monthly VWAP measure, and the psychologically important $100 mark — which was support in 2021.
That could open the door to the low $90s, which was the breakout area earlier and where the 200-week moving average would enter.
I realize that that level is a bit far-fetched and unlikely. However, remember that the quarter doesn’t have to be a disaster to discourage investors.
While Alphabet is one of the strongest stocks in tech, it doesn’t mean it’s immune if the earnings really do rattle investors — and come with a broader market decline in the coming days and weeks.
On the upside, the bulls need Alphabet stock to clear its 10-week moving average, putting it in the $118 to $120 range, then $125.
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