Google/Alphabet is the one FANG stock that has demonstrated better relative strength than the others (Facebook, Amazon, and Netflix). With such a high valuation, this stock is hit hard when the markets get pounded – we just saw this happen in early February. At that time, Google made a bottom. Since then, we’ve seen it move up with a series of higher lows. Volume levels have started to rise, and relative strength has remained solid, especially on the days the markets are taking a hit.
The bullish W pattern is evident in the chart, and while Google is still about 6% off all time highs, the action has been positive. We note a bullish crossover on the MACD, which is generally a precursor of good things to come. We are definitely bullish on Google, and in the Explosive Options service, we just booked a 48% winner March 14 for some at the money April calls. We rolled them into April 760 strikes.
Alphabet (Nasdaq: GOOGL) Video Chart Analysis
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Alphabet Inc., through its subsidiaries, provides online advertising services in the United States, the United Kingdom, and rest of the world. The company offers performance and brand advertising services. It operates through Google and Other Bets segments. The Google segment includes principal Internet products, such as Search, Ads, Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, such as Virtual Reality. This segment also sells hardware products comprising Chromecast, Chromebooks, and Nexus. The Other Bets segment includes businesses, such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X, and other initiatives. Alphabet Inc. was founded in 1998 and is headquartered in Mountain View, California.