Alphabet Inc. (GOOGLE) the shares of the momentum to set an intraday high of $1,576.36 on 13 July. This has given investors the opportunity to book profits to its semiannual risky level is $1564.91.
The leading search engine missed on earnings per share (EPS) estimates in two of the last four quarters. The stock is not cheap, as its P/E ratio is high at 30.69 without offering a dividend, according to the trends.
Alphabet stock closed on Wednesday, July 15, to $1,516.88, up 13.3% year-to-date and in bull market territory at 50.4% above its March 23rd low of $1,008.87. The stock is 3.8% below its intraday high of $1,576.35 on July 13.
The daily chart of the Alphabet
The daily chart of the Alphabet shows a first quarter decrease of 34% from its Feb. 18 high of$1,530 .55 the March 23 low of $1,008.87. The stock will bring together 56% to its intraday high of $1,576.36.15 the 13th of July.
Alphabet stock has been above a cross of gold since June 8, which allows you to track the stock at its all-time high. A golden cross occurs when the 50-day simple moving average rises above the 200-day simple moving average to indicate that the price increase to come.
Alphabet failed to hold its annual value level of $1,408.56 on Feb. 26 and then returned to this level, the 11th of May. A pivot is almost always tested in the course of his time, and that has been the case for this stock.
A test of the Alphabet semi-annual risky level of $1564.91 took place on 13 July. The stock is above its 50-day and 200-day simple moving average of 1 432.96 $and 1 340.30. It is also above its monthly value level for July at $1,450.93.
The weekly chart for the Alphabet
The weekly chart for the Alphabet is positive but overbought, with its five-week modified moving average at 1 441.57. The stock is also above its 200-week simple moving average, or the return to the average, to $1,104.36. Alphabet shares 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 should be 87.25 this week, well above the overbought threshold of 80.00. Just before the month of February, this reading has been above 90.00, put the broth in a tire parabolic bubble formation. The bubble has burst, and the bear market decline, followed. This was followed by the bull market move to the July 13 high.
Trading strategy: Buy Alphabet stock on the weakness of its monthly, annual, and quarterly value levels to $1,450.93, $1,408.56, and $1,330.88, resepectively. Reduce holdings on strength to semiannual risky level is $1564.91.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. The annual levels of to remain on the charts. The level of the month of July was based on the last nine-month period firm, the third quarter was based on the last nine quarterly closes, and the second half by 2020 the level was based on the last nine to the half-year closes. New weekly levels are calculated following the end of each week.
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.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.