Searching for a potential breakout trade? Google it! ($GOOGL) (September 25, 2019)
GOOGL FB AAPL AMZN NFLX GOOGL
I just want to take a quick look at Google ( NASDAQ: GOOGL ). Some of the other FANG stocks; Facebook ( NASDAQ: FB ), no. Apple ( NASDAQ: AAPL) is actually doing okay, that’s the FANG stock. Amazon ( NASDAQ: AMZN ), an oversold bounce. Netflix ( NASDAQ: NFLX ), an oversold bounce, nothing really there. And then we are finally left with Google ( NASDAQ: GOOGL ).
Google ( NASDAQ: GOOGL ) is doing pretty well. I don’t have a position here, it’s just not a stock that I trade but I get technical patterns when I see them. This is a stock, after making this kind of run, pulled back to a much higher low. Low, low, low, higher low. And then just this move yesterday that was followed by a retracement today, sets this up for a pretty good move, it could even be tomorrow. I don’t know, I can’t predict the future. But if this stock starts breaking out above 1250.00, it’s just $5.00 away and it’s a $1245.00 stock, $5.00 is the bid and the ask, it’s just not that big of a deal.
If Google ( NASDAQ: GOOGL ) breaks out above 1250.00, on heavier than average volume, I think this could be a pretty solid buy. And if you are an option trader I wouldn’t be buying calls I would be selling puts. I would be constructing an out of the money bull put spread to take advantage of this move.
The reason that I say that is because we have a lot of breakouts lately that have been failing. They haven’t been reversing but they have broken out and then pull back, there is really no continuation, they will pull back and just kind of fritter around here at the same level and then ultimately, either move higher of fall. But in this case, I think if Google ( NASDAQ: GOOGL ) runs higher you can sell that premium, sell some October puts and then just let the time evaporate on that. That’s how I would be trading Google ( NASDAQ: GOOGL ).
Free Chart