Here’s your trade on Alphabet $GOOGL – May 10, 2023
This is Dan at StockMarketMentor.com. I want to look at Google ( NASDAQ: GOOGL ) today, hopefully, you can see why.
This stock has kind of been flirting with breaking out for a while, and it looks like now we are going to consummate the relationship. The 50-day has crossed above the 200-day moving average, which is a good thing. If you look at this really, really closely, not that you really need to, the 200-day moving average is just starting to move higher. So if you are doing screens in this way this is going to pop up on your screen.
The bottom line is this, as you can see this thing has created one big long bowl that goes back to last August. And so, if you just want to look at the oscillations here on this, I would have to say that the selling is pretty much over. These big volume spikes, or these downward spikes here are pretty much over. This bounce off of these trendlines, repeatedly, is pretty much over.
What does that leave us with? Well, what it leaves us with is a breakout. And so, what I plan on doing, because I will be honest with you, I didn’t see this today, I watched it but I had crap to do, I’m not at my desk all day long, believe it or not, so I missed this move. Then as I have been going through the lists that I look at after the market closes, this is the one that really jumped out at me, so I am giving this to you, hopefully, early.
Yesterday, the stock came very close, it did kind of break out, it actually popped up on my screen then, but then it pulled back and had a really crappy close. Today, though, we’ve got institutional buying. Earnings are not an issue, so I am looking for more upside here. If you are so inclined, you can even buy this stock with less than a 5 percent risk.
I would give it a little more room than today’s intraday low, though, you really don’t have to. I would put the stop below yesterday’s intraday low on this. You could say, Well, what about the 50-day moving average? And I would say, Well sport, the 50-day moving average really isn’t relevant to the actual trade, it is, with respect to where the stock is.
But if I am buying the stock here, and I have to wait until the stock goes down here, before I acknowledge that I am wrong, I am not going to last very long in the trading business. I need to have a reason for my entry, and that would be a breakout. And because I know what my reason is I also know when I will be wrong. And when I will be wrong is, if the stock reverses enough to totally undercut the breakout. So this is where you are buying, this is where you are putting your stop, basically, end of story.
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