GOOG: Now What?
Mike Paulenoff | Feb 04, 2016 11:53PM ET
Alphabet Inc C (O:GOOG) rocketed in reaction to its February 1 earnings beat, which spiked the stock to an all-time high at 823.74.
That is the good news.
The bad (technical) news is that the new high was not confirmed by my intermediate-term momentum gauges, with the price structure above Google (O:GOOGL)'s June 2012 upper-channel boundary line at 772.
The combination is (was) a prescription for a powerful, downside reversal into a correction.
Although GOOG has reversed sharply beneath the upper-channel boundary, it remains vulnerable to pressing lower to probe key support between 680 and its Jan 20 low at 673.26, which must contain the weakness to avert a full-fledged test of its rising 200-Day EMA, now at 662.01.
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