Alphabet (GOOGL) Stock Chart Analysis as Quarterly Earnings Report Looms
Alphabet, Inc. GOOG GOOGL will release its second-quarter results after the bell on Tuesday. The stock was down more than 2% before the event and has fallen almost 7% since it began trading on a 20-1 adjustment basis on July 18.
In the trading session following Google’s rare Q1 earnings miss, the stock lost more than 6%, but soared 4.41% the following day. For this quarter, Alphabet reported EPS of $24.62, missing the estimate of $26.11 and sales of $68.01 billion, which slightly exceeded the estimate of $68.00 billion. .
For the second quarter, Google’s consensus estimate for earnings per share is $1.31 on revenue of $70.35 billion.
KeyBanc Capital Markets’ analyst Justin Patterson on Tuesday cut Alphabet’s price target from $153.75 to $125.
Traders will be watching Alphabet’s reaction closely in the post-sale trading session. Holding a position in a stock above earnings, especially for options traders who have to consider “premium consumption,” is risky because a stock can fall after a beat in profits and rise after a loss.
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The alphabetical table: On Tuesday, Alphabet broke lower from an ascending channel pattern, in which the stock had been trading since May 25. the impression of profits after the bell and the fact that the decline occurred on below average volume, there is a chance that the stock will rebound.
- The drop confirmed that Alphabet is trading in a downtrend, with the last lower high printed on July 20 and $116.33 and the most recent confirmed lower low formed at $109.30 on July 13. On Monday, Alphabet confirmed the trend was intact by falling below the most recent lower low.
- Eventually, Alphabet will rebound to print, at least, another lower high. Traders and investors can watch the stock for a reversal candlestick, such as a doji or a hammer candlestick, which could indicate that the rebound is underway.
- If Alphabet experiences a bearish reaction to its earnings print, there is still a gap between $97.79 and $100.10 that is likely to close. The gap was left on February 3, 2021.
- Bullish traders would like to see Alphabet move back into the ascending channel after its earnings release, which could indicate that Tuesday’s bearish price action was a bear trap.
- Alphabet has resistance above $106.53 and $111.50 and support below at $101.88 and $97.79.
See also: Investor fear rises slightly ahead of big earnings, Fed decision