Alphabet Inc. (GOOGLE) missed the earnings per share (EPS) estimates after the closing bell, on the 28th of April. The stock gapped higher on April 29, and then pulled back slightly. Weakness in May 4, held its semiannual and quarterly pivots at $1,314.17 $and 1 301.83. The strength on Friday is shy of its annual and monthly risky levels at $1,408.56 $and 1 420.76.
The company behind the search engines on the internet has missed on EPS in two of the last four quarters. The stock is not cheap, as its P/E ratio is high at 27.63 without offering a dividend, according to the trends.
Alphabet stock closed last week at $1,384.34, just 3.4% year to date, and in the bull market territory at 37.2% above its March 23rd low of $1,008.87. The stock is 9.6% below its intraday high of$1,530 .73 game Feb. 19.
The daily chart of the Alphabet
The daily chart of the Alphabet shows the formation of a golden cross on August. 12, when the 50-day simple moving average rose above the 200-day simple moving average. This buy signal has shown that higher prices will follow. This follow-up of the stock to its intraday high of $3,530.73 game Feb. 19.
Alphabet shares have seen a huge price gap lower on Feb. 24, which has pushed the stock below its 50-day simple moving average. The stock has then failed to hold its annual pivot at $1,408.56 on Feb. 26. Alphabet then spread wide below her semi-pivot at $1,314.17 on 6 March. The 200-day simple moving average, has sold on 11 March that the stock has fallen to its March 23rd low of $1,008.87.
The V-shaped recovery that has the stock back up to its 200-day simple moving average of 1 270$.22 on the 14th of April. Then came the difference of a higher price, April 29, on the positive reaction of the profits. Note how the semiannual and quarterly pivots at $1,314.17 $and 1 301.83 held on the pullback. The proximity of the potential increase is annual and monthly risky levels at $1,408.56 $and 1 420.76, respectively.
The weekly chart for the Alphabet
The weekly chart for the Alphabet is positive, with above its five-week modified moving average at $1,284.00. The stock is also above its 200-week simple moving average, or the return to the average, to $1,071.88. Alphabet tested this average on weakness during the week of March 20 as a buying opportunity at $1,053.72.
The 12 x 3 x 3 weekly slow stochastic reading rose to 47.78 last week, an increase of 47.78 on the 1st of May. Just before the month of February, this reading has been above 90.00, put the broth in a “swell parabolic bubble” of the training. The bubble burst and a bear market decline, followed.
Trading strategy: Buy Alphabet shares on the weakness of the half-yearly and quarterly value levels at $1,314.17 $and 1 301.83, and reduce the holdings on the strength of the annual and monthly risky levels at $1,408.56 $and 1 420.76.
How to use my value levels and risky levels: The closing price on Dec. 31, 2019, were inputs to my proprietary analytics. Half-yearly and annual, the levels are still on the charts. Each calculation uses the past nine closes in these time horizons.
The second quarter of 2020 the level has been established based on the 31 March, close by, and the level of the month of May was established based on the April 30 close. New weekly levels are calculated following the end of each week, and new quarterly levels occur at the end of each quarter. Half-yearly levels are updated in the middle of the year, while the levels remain in play throughout the year.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
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Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.