GOOGL tumbles, losing $88.08 (-5.51%) within a single day
Alphabet Inc. (GOOGL) Technical Analysis Report for Oct 28, 2020 | by Techniquant Editorial Team
GOOGL ended Wednesday at 1510.80 tanking $88.08 (-5.51%), significantly underperforming the Nasdaq 100 (-3.93%). This is the biggest single-day loss in over seven months. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (GOOGL as at Oct 28, 2020):
Wednesday's trading range has been $45.09 (2.91%), that's above the last trading month's daily average range of $36.18. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GOOGL.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Black Candle.
Prices are trading close to the key technical support level at 1495.07 (S1). The market closed below the 100-day moving average at 1511.50 for the first time since October 8th. When this moving average was crossed below the last time on October 2nd, GOOGL actually gained 1.87% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 13 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Alphabet. Out of 424 times, GOOGL closed higher 55.90% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.79% with an average market move of 1.26%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are FB losing -5.51% and AAPL closing -4.63% lower. None of the markets managed to end the day in the green. Read more