BY LICIA LESLIE
March 6, 2024
Hi Shoppers,
Alphabet Class A (Ticker: GOOGL) has gotten pounded since the earnings report.
It is down almost 14% in just over a month.
Yesterday’s candle may be signaling a change in this downtrend.
The candle is a hammer, which is found at the bottom of a downtrend and could be the signal of the end of this trend.
The hammer has a small real body (colored area) with a longer lower shadow (tail or wick) and the Japanese say it is pounding out a base.
It shows that the bears were in control until the stock reached a price where the buyers stepped in, the bears covered and the stock rallied and closed near the high of the day.
Check it out:
GOOGL is also flirting with the 200 day moving average at this level, which we know is support.
Of course we need confirmation of the stock opening and trading higher this morning before we hop into GOOGL on the long side.
And as with everything to do with trading … nothing is 100%, but we have an edge to watch for this change in trend to happen.
Trade Review
Wayfair (Ticker: W) had a really nice rally and has since pulled back. The chart is still bullish, use a close below $60 to bail on your longs.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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