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Fan Yang

Alphabet Inc. (GOOGL) - $1000 Still in Sight After Price Retreats From 200-day Moving Average

In May, I noted that there could be support for $GOOGL at the $1120 area, but also said that I would prefer the $1020 area for an entry. A month later, the $1120 support proved to be weak, and price action still has the $1000 area in sight.

GOOGL Daily Chart

(click to enlarge)

Furthermore Downside:
- Price rebounded from $1040 in June, but found resistance around $1125.
- This showed that the market respected the 200-day simple moving average as resistance. 
- This price action thus suggests there could still be further downside below the current low around $1040. 
- I think there is a good chance price will dip towards the $1000 level before finding support.
- If $1000 does not hold, $920 could be next. 
- However, for now, I maintain my entry order just above the $1000 mark, at $1020. 
- I would also maintain some dry powder around $920. I don't have an entry order there at the moment, but I will be keeping this potential entry level in mind when trading to free up dry powder if GOOGL does dip below that $985 lower-bound of the support range.

GOOGL Weekly Chart

(click to enlarge)

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