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Fan Yang

Alphabet Inc. (GOOGL) - $1120 Is Key Pivot; But I am Also Preparing for $1000

I am no longer in Alphabet $GOOGL. I exited all my position when price came up to $1200. I was anticipating another pullback. Instead price surged for another month to almost $1300 before finally pulling back. I wouldn't mind re-entering now around $1120-$1130, but if I can make some adjustments to my allocations, I would want to also free up some dry powder for a buy-entry at $1000.

GOOGL Daily Chart

(click to enlarge)

Support:
- As we can see on the daily chart, there was a strong bullish reaction last week when price tagged $1120. 
- This bullish engulfing candle could mean that the market is now anchoring above $1120.
- However, note that this is the middle of a range GOOGL has established.
- It COULD become support if the market is bullish.
- But if the current trade-war risk aversion turns into a panic, we can see even a name like GOOGL slide back towards those 2018 lows, which is right around $1000.
- But I don't think price will fall below this area.
- If price does break down $1000, it would complete a double top.
- The next support at $920 is very important as well because this would be coincident with a rising support seen on the weekly chart. 
- The 200-week SMA is also around $950. A pullback to $920 therefore would still be within the context of a long-term bullish trend even if there is a double top.

GOOGL Weekly Chart

(click to enlarge)

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