Here’s your trade on Alphabet (GOOGL) — it’s not what you think it is. (April 26, 2016)
I’m going to look at Google ( NASDAQ:GOOGL ) here in this Chart video. Here’s why: Yesterday the stock was still just kind of trading in this post disappointing earnings little range here. And then if that wasn’t bad enough, today the deal was the FTC is investigating Google ( NASDAQ:GOOGL ) because of their Android dominance. Apparently like 80 percent of all the smart phones are running on Android systems. And if there is one thing the government doesn’t like, and I get this, it’s antitrust. In other words, where there is just a monopoly I should say. So they’re checking this out and I believe, though I’m not exactly sure, some of you nerds will know better, I believe that the EU just kind of did the same thing with Google ( NASDAQ:GOOGL ). So they’re not making friends, and the stock is not really making friends either. But here’s what I want you to do: I want you to look at how this stock traded today, down another 2+ percent but it’s still at the 200-day moving average. It’s still close to that level.
If you look at the weekly chart you’ll see, if I were basically to wipe out the price here, and I just turn this into a line chart is all, and then I really bumped the width on the 200-day or the 40-week moving average, you would see that this stock is in an uptrend. A long consolidation here, but you would look at this and think, “Well if there is an opportunity for me to buy it close to this line here. It sure is moving up it’s just my kind of line.” And so low and behold that’s exactly what we have here, Boom! on the candlestick chart. So I want you to look at this not as a real red flag or anything on Google ( NASDAQ:GOOGL ) . But really as more of, frankly, a buying opportunity. I want you to keep a stop here, if the stock starts trading down another 50 points or so, which might sound like a lot, but if we just drag this down it’s less than 8 percent. 6 or 7 percent. If the stock starts trading down that low then maybe this is more kind of a top. But I think you’re actually going to be good owning Google ( NASDAQ:GOOGL ) right around the 200-day moving average.
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