October 28, 2024 at 03:24PM
Alphabet shares traded to a high today at $168.75 near the open. However, at session highs, the price was also testing its 100-day moving average at $168.79. Sellers leaned against that level and the price wandered lower.
A news headline that Meta- reportedly has developed an AI search engine that would lesson reliance on Google has led to the price moving further to the downside, with the price reaching an intraday low at $163.95 (it has since rebounded back to $165.50). With the 100-day moving average holding against resistance earlier today, technically the price action keeps the sellers in play AND increases the MA as a key topside target.
What neutralizes the technical view in the medium-term is that last week – and in October – the lows in GOOGL sharea have been able to hold support against its rising 200-day moving average. That level comes in at $161.28 currently (green line on the chart above).
So although sellers kept a lid on GOOGl earlier today at the 100-day moving average, the buyers against the 200 day moving average below are doing a job of holding support. A battle is in play between support buyers and resistance sellers against key daily MA levels.
WHich way will the next shove push the price?
Fundamentally, the news today is putting a lid at the 100 day MA, but much will also depend on earnings as well. Alphabet will announce earnings tomorrow after the close with expectations of EPS of $1.84 and revenues at $86.39 billion. That compares to a year ago EPS of $1.55 on revenues of $76.93 billion.
Traders are likely to wait and see before making the break. However, the battle lines are drawn vs. the daily MA levels.
This article was written by Greg Michalowski at www.forexlive.com.
