Technical Update - Alphabet range bound. Can earnings surprise give direction?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Alphabet (Google) is range bound in a wide range between 105 and 120 – both A and C shares (A shares are trading a few cents lower, however).
Break out of the range with a daily close is needed for direction. RSI is showing negative sentiment since it has not been able to close above 60 and all Moving Averages are declining, which indicates break out should be to the downside. If break out is to the upside Alphabet could move to around 130-131.
If break out to the downside Alphabet is likely to resume the medium-term downtrend that could take the share price down below USD 100, possibly testing the 200 weekly SMA around 85-92. See weekly chart
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