Google Trade Idea
Trade idea and techncial analysis of Alphabet / Google ($GOOG)
Google has been trading in a consolidation wedge for the past few months. The share has recently come back down to the level of support shown in green. The support level was previously tested in August after which the share price ran all the way to $124 before hitting resistance. Now that the support level has been tested again and price has rebounded upwards after encountering support, I am expecting a similar move upwards in the share price. This presents a trading opportunity to buy the share at the current price and hold the share until it reaches the next level of resistance shown in red.
The trade idea has the following parameters:
Entry Level: I would look to enter the trade at the current price of $109 or slightly lower should we see a pull back in within the next few hours.
Stop Loss: I would place my stop loss just below the support level at $106.
Take Profit: My first take profit target would be if the share had to reach the next level of resistance at 124$ a share. I will however wait to see if this level of resistance holds or if the share can break above this level before closing the trade.
When put together this gives you a trading opportunity with a risk to reward ratio of 5 to 1. There is currently an upside of just over 13% from the current price level to the next level of resistance. Should price be able to break above this level of resistance and continue to move higher my next price target would be the level of resistance at $130 offering a potential upside of 18% from the current price.
This is not financial advice and is merely for educational and informational purposes only.