Technical Update - Alphabet A (Google A share) set to be rejected at key resistance. Could resume downtrend
Kim Cramer Larsson
Technical Analyst, Saxo Bank
Alphabet A shares are set to open lower around $98. It is a rejection of the key resistance and 0.382 retracement at around 105 the share was testing yesterday.
Daily RSI is showing negative sentiment with no divergence and seems to be rejected at the 60 threshold. If Alphabet A closes below 97.70 the share is back in bearish trend that is likely to take lows around 94.38 out.
For Alphabet A to reverse this bearish picture a close above 111.62 is needed with a close above 105 as the first indication of a short term uptrend. If that plays out it will confirm an uptrend to around 120-122.
Alphabet A has been trading in a wide falling channel. If the above scenario plays out and weekly RSI, which is showing divergence, breaks below its lower rising trend the divergence will be cancelled and the share price could drop to 91-85 area, likely testing the 0.618 retracement at around 89.06
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