by Shane Ormond
On Jan 21, 2020
Now that the Chinese factory is complete (and just in time for a deadly virus outbreak), self-proclaimed “Buff Mage” Elon Musk is turning his attention to Germany, where colonies of bats and unexploded World War II bombs threaten to undermine investor confidence. (Those are not metaphors.)
Yesterday, we looked at a chart of J.P. Morgan Chase & Co, and noted that the stock was temporarily oversold.
Today’s Chart of the Day is a Daily Price chart for Alphabet Inc. (NYSE: GOOGL).
Alphabet, in addition to owning Google, offers performance and brand advertising services in the U.S., Europe, the Middle East, Africa, Asia-Pacific, Canada, and Latin America.
Now, the Daily Price Chart below shows that GOOGL has been making a series of 52-Week Highs for the last month.
Plain and simple… stocks just don’t hit 52-Week Highs unless they’re on a very powerful uptrend.
But it’s always a bumpy road for companies in a bull run, because stocks in a price uptrend don’t advance in a straight line.
There are always price retracements along the way.
GOOGL experienced periodic price pullbacks during its strong advance since last month.
That gives traders an opportunity to get in at lower risk entry points, after a 3 to 5% price retracement as the stock normally resumes its price uptrends after such retracements.
We’ll keep following Alphabet Inc. as it reaches new highs, and waiting for the right price retracement to make a play.
Editor, Chart Of The Day