GOOGL/GOOG – the DOUBLE Weighted Twins on the SPX/NDX are reporting Monday after the market closes to kick off the week which has every big name in by the end of it except AAPL. Everyone knows they are due to write down a $5B fine imposed by the E.U., but shares are sustaining their 1200 level since the reaction can wait until Mondaynight when earnings come out.
Just like NFLX and FB & AMZN, GOOGL has made 5 waves up off its APR 2/YTD LOW (984) and has pushed up to that limit area I’ve mentioned a few times up here @ 1220-1230 for the ideal 5=1 relationship.
Having broken past the JAN 26 High in JUN with a fake little +3.49 higher so it could join the rest of FAG, the final move up here as they all post their wave 5 tops has met all requirements needed for a 5th wave. Its done it with negative divergences on the Daily MACD, 9,3 Slow Stochastics and a heavy negative divergence on the daily OBV:
less and less money is poured into GOOGL and since liquidity drives markets… well…
The weekly chart is not much better with also potential negative divergence on the weekly MACD, 9.3 Slow Stochastics and MFI is not keeping pace with the higher prices.
GOOGL can go up and still extend to 1234.59 as I have a very well plotted 161.8 fib extension their and it aligns with a 1% move above the 1221.59 ATH, but I wouldn’t count on it other than how that same plot showed on last night’s MSFT report for an AMC tagging.
With the Q1 miss, lowered guidance and inability to gain 100% off the 2016 Lows, upside reward vs downside risk is not very favorable as of now – regardless of higher fib extensions starting at 1304 existing.
I have (3) JUL 27 GOOGL 1150 PUTS for the earnings play as 1158 is my “FOMO WARNING” Line.
Further out, I am the proud owner of (8) JAN 17 2020 GOOGL 1120 PUTS which are currently trading just above $85. Those are “parked” and I have sufficient time in place for them to be worth $200+ when the market roll over as they are due to begin having been in this current Major wave for 4 months come AUG 2 (with more rollovers in the time between).
Those looking to park money can look out at those JAN 2020 PUTS, but those wanting to play the earnings can “risk” ahead no lower than 1150 or wait for the report to come out and play into FB Wednesday Night and then AMZN Thursday night with Friday the real play day on all of them.
NOTE: the 161.8 Fib Extension off your JAN 2015 – FEB 2016 – BREXIT tags precisely to 1189.59 and has proven itself multiple times this year.
GOOGL MAR 13 High sits @ 1178 and the 23.6 YTD Retracement sits @ 1165.52 with -5% just below @ 1160.51 – just above my “FOMO Warning” Line. The 50dMA sits just below all this @ 1140’ish
GOOGL 5Day 5Min
GOOGL 90Day 4Hr
GOOGL Stock Charts Daily
NEVER TRADE ANYTHING without having looked at your chart and seeing what & why this might be an trade idea you might have thought of on your own.
My Strike/Expiration/Direction Choice might not be what you see.