Technical Outlook On Google
I've seen a lot of chatter in recent days pick up on Google (GOOGL) among traders.
So I thought I would provide some of my own thoughts on GOOGL as it pertains to its technical matters + analysis.
First, it is range-bound. and has been since early May when it had a huge gap up. Since then it has essentially been stuck between the $910's and $1000.
Right now it has plopped itself right in the middle of the range, which usually wouldn't offer many clues as to its outlook and direction. But here, you do have some technicals coming together to offer a modest trading opportunity. First, you have a base breakout, and for now, I wouldn't put much hope of it getting through the $1,000/share.
Over the last four days, it has held those gains that were achieved on the breakout in the form of a bull flag.
So for me, to trade this, I would have to put my stop-loss either below the lows of the past four trading sessions, or below the base breakout. It's tight, but there is little reason to hold this stock if it can't maintain that bull flag, or the base breakout. Once it gets to the channel highs, see if it can breakout, if it sees a sharp selling intraday, then go ahead and book the gains and move on. ]
Here's the technicals I'm talking about!
(Click on image to enlarge)
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#Google doesn't have a lot of drivers to get itself out of the range it is in, although over time if their earnings grow they will move up on value versus their peers. I think changing their name to Alphabet was a dumb move although hopefully over time the founders will lose more control over Google and the money losing playground will disappear which will be good for shareholders. I'd buy Google if all it did was search, their phone technology, and android.
@[Moon Kil Woong](user:5208), while I almost always agree with your insight and pearls of wisdom, in this instance I must disagree. What made #Google the titan it is today is that it gives it's employees the freedom and resources to explore and R&D what ever intrigues them. Who knows what future innovations and blockbuster products will come out of these efforts.
You yourself cite android and phone technology as a reason to invest in Google. Yet if Google had followed the same logic you recommended 10 years ago, they'd still be nothing more than a search engine. $GOOGL
Freedom is not what I would define Google's campus and I've been at Google many a time. It is a dog eat dog business environment where performance and networking survive. I am all for R&D, but directed to where it is profitable. One reason Google is the way it is, is because of so many divisions that don't make money ever and going from project to project. Google is a great company. Carefully honed focus is the key.
@Alphabet is a ridiculous name. It will always be plain ol' #Google to me!
I agree on the name change. Never made much sense to me, especially since they adopted such a common word as the name. $GOOGL