Alphabet Inc (GOOGL), Amazon.com, Inc. (AMZN): Trade Planning and Targeting For These Stocks
Corey Rosenbloom: Big trending stocks Google Inc (NASDAQ:GOOGL) and Amazon.com (NASDAQ:AMZN) took a big bearish hit (gap down) this morning and arrived at a critical support pivot level.
Let’s update our charts of these high-flying, bullishly trending (so far) charts and note an unbiased trade plan at these critical pivot prices.
First up is Google (GOOGL):
As we’ll see from the similar chart (and trade plan) in Amazon.com, Google (or Alphabet if you prefer – I don’t), the stock is uptrending into a key resistance level AND a key support level as highlighted.
A Bull Trap outcome (like the broader stock market) thrust price back to the lower support trendline and rising 50 day EMA (blue).
It’s from here we’ll plan the next swing and thus create a short-term trading plan.
A bullish movement “up away from” the $750 pivot suggests a return to the upper trendline near $780.
However, our first breakdown and sell-pathway triggers under the $750 and especially $740 level.
If we see a downside swing, look toward the $710 region as highlighted for a breakdown target.
Otherwise, Google (GOOGL) should be seen as “Edge of the Cliff” bullish until proven otherwise with a breakdown.
The situation is almost identical in Amazon.com (AMZN):
A similar uptrend took price to a similar sideways (highlighted) rectangle or trendline pattern.