Stock of the day: Google
11 April 2023
Positive movements in the broad market can be reflected in the charts of individual stocks. In today's analysis, I would like to discuss the situation with Alphabet, which had its own buy signal triggered on Thursday, just before Easter.
The technical buy signal came from the fact that on Thursday, GOOGL broke three key resistances at once. The first one was the long-term downtrend line, which has been active since February 2022 (red). The second one was the mid-term downtrend line, which has been active since April 2022 (black). Finally, the third one was the horizontal resistance at 105.5 USD (orange), which has been acting as support since May 2022.
As long as the price remains above these three supports, the sentiment is positive and the buy signal is ON. However, if the price drops below these supports, it would be a bad sign, as it would mean a false breakout, which is usually a strong signal in the opposite direction.