I’d imagine your portfolio has been looking better and better.
With Bill Gates and Co. being a bellwether of the broader market and all of tech, this doesn’t bode well for the others.
Now, I’m a big fan of Alphabet Inc. (GOOGL). Even Stanley Druckenmiller — the man behind one of the greatest trades ever (look up his trade on the pound sterling) — called the company a basic “value” stock.
But what does this all mean for the stock?
Let’s look at the chart:
Above is the daily look and I want you to focus more on the various icons placed on the chart…
Today is less about indicators and more about finding value within the price action.
Scroll down.
Each of the golden bars denote a specific type of gap.
You may notice that there’s not necessarily a true gap between each of the candlesticks, but simply a “thin” space covered by a candlestick wick.
These are “volume imbalances”.
(Credit to the forex community.)
Traditionally, we’re focused on gaps between bars and for good reason. These are imbalances that get filled as well.
Volume Imbalances are a bit sneaky though… and tend to get filled.
The thumbs-up icons you see mark areas where this has happened successfully.
The red arrows? Not so much.
But let’s look closer to the recent action…
After three days of upward movement, GOOGL looks to be ready to swing low to cover the combination of a Volume Imbalance and standard gap.
The latest gap is pointed out by the lower red arrow.
I’d look here for a first target. If this gets traded into and holds, the next move is upward to test the Resistance channel in red.
Keep moving,
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
