Chart Of The Day: Trading Google's Strong Earnings
Pinchas Cohen | Jul 24, 2018 10:01
Alphabet (NASDAQ:GOOGL) stock continues to charge higher after it jumped over 5 percent in after-hours trading, as the e-retailer posted strong results for the three months ending June 30. Where is it headed next?
Trading has been forming a bullish falling flag, in which time bulls take profits following a 10-percent jump in the two weeks between July 2 and July 15, allowing new-comers to pick up the slack and charge the next rally.
An upside breakout would signal that profit-taking has ended and that traders are prepared to resume the rising channel since April.
Trading Strategies – Long Position Setup
Conservative traders would wait for a new peak, above the 1221.59 posted Wednesday, to confirm the uptrend, followed by a likely return move to retest and prove the flag’s support, with at least one long, green candle following a red or small candle of any color.
Moderate traders may be satisfied with a close above the flag. While they may wait for a potential return-move for a better entry, they may not necessarily wait for proof of demand.
Aggressive traders may enter now, if they can afford a stop-loss below the 1190 flag support – or accept a measured loss – considering the potential volatility ahead.
Equity Management
Do not enter trades before ensuring a minimum of a 1:3 risk-reward ratio, to maximize statistical odds.
Trade Sample
- Entry: 1200
- Stop-loss: 1100 Risk: 100
- Target: 1500 Reward:300 R
- Risk-Reward Ratio: 1:3
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.