I tried a quick trade in GOOGL 0.00%↑ about a month ago that didn’t do much -
With the headlines last week regarding potential break-ups of the company’s core divisions, the stock took a pretty quick nose dive.
A lot happening in the chart above, but the stock ended the week below declining 20 and 50 day moving averages. It’s below the AVWAP from the post earnings report gap up, and within a few dollars of a 200 day moving average this flattening out. There are also some unfilled gaps to the downside.
I expect the stock will break that 200 day moving average, but there isn’t a favorable risk/reward trade until it actually does (in my view). So I have an alert set on the 200 day (orange), and in the event of a breach, would be looking at a short trade targeted at that unfilled gap range down in the $140’s.