However, we won’t have to wait long to hear from the rest of the group. Apple (AAPL) - Get Report, Amazon.com (AMZN) - Get Report and Facebook (FB) - Get Report will report their results later this week.
It’s a busy couple of days for Wall Street, as investors try to position ahead of what tends to be a volatile event. On the one hand, many of these stocks are still well below their 2020 highs. On the other hand, FAANG has rallied quite a bit from the lows already.
In the case of Google though, the story is a little different.
Up “just” 24.4% from the lows seems like a solid rally. But it lags Apple and Facebook, as well as Amazon and Netflix as the two recently made new all-time highs. The rebound also lags the Nasdaq and S&P 500.
In that sense, it feels like Alphabet may have some potential upside. Let’s take a closer look at the charts, particularly for long-term bulls.
Trading Alphabet Stock
The stock is chopping around in an interesting area. For the last few weeks, Alphabet stock has been grinding just below the 200-day moving average.
On both Monday and Tuesday, GOOGL stock opened above this mark but failed to hold it as support. For a technician, this makes it difficult. Clearly the level isn’t acting as impenetrable resistance, as Google is not being violently rejected by the moving average.
However, the bulls clearly lack the strength to take shares higher. It doesn’t help that the 50% retracement comes into play near $1,270 as well. This makes the current area quite significant.
On the plus side, a bullish reaction that thrusts Alphabet stock above the 200-day moving average could trigger an even larger rally. That is, provided the stock can close over this key moving average.
If Alphabet can take out the April high at $1,294.10, it could trigger a move up to the 61.8% retracement near $1,331. Remember, if GOOGL stock begins to rally, it has plenty of catch-up potential to its peers.
If it can’t close over the 200-day moving average or it pulls back, shares could be heading for the 50-day moving average near $1,240. Below that puts the 20-day moving average at $1,216 and the 38.2% retracement at $1,208 in play. If that fails as support, sub-$1,200 is on deck.