Alphabet Technical Analysis (NASDAQ:GOOGL)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. When a chart pattern that can predict future Alphabet stock price movements is formed, the GOOGL stock chart can become a key tool for a technical analyst.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Alphabet. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Alphabet stock analysis using these technical indicators helps identify trading opportunities.
Alphabet Moving Average:
Moving averages help predict the price direction of GOOGL stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Alphabet are mostly signals of long term trends and will help long term traders.
Alphabet Bollinger Bands:
Bollinger bands comprise of a center line usually GOOGL SMA, and two GOOGL stock price bands above and below it. The stock is considered over brought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the lower band in the context of Alphabet bollinger bands.
Alphabet Moving Average Convergence Divergence or MACD:
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Alphabet MACD indicator is below 0 indicating a bearish trend.
Alphabet Relative Strength Index:
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. 71.73 is the RSI value of GOOGL stock. .