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May 19, 2023
After ending yesterday at $123.52, Google rallied to $126.48 today, hitting its highest point in 1 year. It later lost $3.23 and closed at $123.25.
Google is currently trading at $123.25 following the release of Fed Chair Powell speech data from the United States.
This uncertain state for Google is reflected by published market data as United States Existing Home Sales (Apr) released yesterday at 14:00 UTC with a figure of 4.28 million, while the previous figure was 4.43 million. United States Philadelphia Fed Manufacturing Index (May) came out at -10.4, while a consensus of analysts was expecting -19.8. Data for United States Initial Jobless Claims published yesterday at 12:30 UTC came out at 242,000, beating projections of 254,000 and showing improvement over the preceding figure of 264,000.
Technical analysis shows that Alphabet is approaching key support, around $1.43 away from $121.82. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to momentum evaluation, the Relative Strength Index indicates Google is currently 'overbought' which suggests new gains will be harder to obtain. Asset volatility analysis shows that Google's upper Bollinger Band® is at $126.29, suggesting that a downward move may follow.
Overall, while Google has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
Meanwhile, mixed performances were seen by other communication services stocks as AT&T went down to $16.31, losing 1.45% after it closed at $16.55 today. Netflix went down to $365.36, losing 1.6% after it closed at $371.29 today. T-Mobile gained 0.62%, as it traded at $139.03.
The stock has been trending positively for about 2 months. The search engine giant now trading 33.8% above its 3-month low of $83.49.
