Want to trade Alphabet (GOOGL)? Here’s the plan from A to Z. (April 25, 2016)
In this video I want to check out Google ( NASDAQ:GOOGL ). The company has already reported earnings, so unlike a lot of the companies this week and next week, Google ( NASDAQ:GOOGL ) is out of the way. The stock has found support here at $730.00. So lets look at this. First of all there’s no denying the uptrend, it’s right where we want to be if we are trend followers, and I am. Guess what? We like the winners circle, don’t really like stocks that are down in the penalty box. So Google ( NASDAQ:GOOGL ) works here on the weekly time frame. It is and has been in consolidation for quite a while. We’ve seen this before, SEVERAL times. You don’t buy Google ( NASDAQ:GOOGL ), you don’t own Google ( NASDAQ:GOOGL ) because it pays a dividend; because it doesn’t. You own Google ( NASDAQ:GOOGL ) because IF the stock breaks out it’s going to break out big time.
Here’s the thing, if you want to own this stock and you’re looking for it to move higher; if you’re not buying it now but you’re waiting for the stock to actually move up to an all-time high, you’ve giving up about 10 percent. Assuming you are bullish on Google ( NASDAQ:GOOGL ), I’m neutral on it, which I will explain in just a second. Assuming you’re bullish on Google ( NASDAQ:GOOGL ) you can take a little stock now. Start building a position. If the stock pulls back a bit, if it happens to touch the 200-day moving average, then take a little more. But think about this, you’re kind of right in the middle of the box. You’re right in the middle of where I would say, support is down here, resistance is up here, you carry this over, here’s where the stock is, basically kind of right in the middle. So you buy the stock, you buy a little bit now, that keeps you from staying AWAY from this stock until it breaks out well above 800.00. And then you’re saying, “Oh crap! Well I can’t buy it now. I’d have to wait for the stock to pullback.” Don’t be thinking about this with Google ( NASDAQ:GOOGL ).
This stock, once it moves it moves big time, but this is your time frame. Seriously, this is your time frame. If you don’t have this time frame, that’s fine, just have another stock, or trade this with options. The reason I say I am neutral on this is, I have a bearish position up here in options. As long as Google ( NASDAQ:GOOGL ) stays below here I’m good. As long as Google ( NASDAQ:GOOGL ) stays above here, I’m good. I think it’s got a better chance of staying above here than it does staying below here, so we’ll just take that one day at a time. That’s my trade on Google ( NASDAQ:GOOGL ). That’s my advice on Google ( NASDAQ:GOOGL ). Be a long-term holder of Google ( NASDAQ:GOOGL ), if you like Google ( NASDAQ:GOOGL ). If you think the company has seen its better days, etcetera, etcetera, then just take what I’m saying as a potentially interesting video, but beyond that, this isn’t your trade.
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