GOOG: Technical Trade AnalysisOur portfolio is up by 17% over the last month 🍾🍾. Here is the link:
www.tradingview.com
Here is the latest analysis of our GOOG trade:
Analyzing the provided chart for Alphabet Inc. (Google) Class C on NASDAQ (GOOG), we can consider several key aspects to determine potential exit strategies in line with Mark Minervini's swing trading approach:
Moving Averages: The stock is currently trading above the 50-day moving average (MA), which often acts as support in an uptrend. As long as the stock remains above this moving average, it could be considered to be in a healthy uptrend.
Volume: There is no visible volume spike on the entry day; however, subsequent days show average to above-average trading volume, which is generally positive for a continued uptrend.
Bollinger Bands: The price is approaching the upper Bollinger Band, which could be an area of potential resistance. Some traders might consider taking profits as the price touches or breaches this upper band, especially if it coincides with other signs of overextension.
Relative Strength Index (RSI): The RSI is approaching overbought territory but is not yet above the 70 level, which might suggest caution but not necessarily an immediate exit.
MACD (Moving Average Convergence Divergence): The MACD line is above the signal line and above the zero line, which is bullish. There is no immediate sign of a bearish crossover, which would be a potential exit signal.
IBD RS (Investor's Business Daily Relative Strength): The IBD RS line is trending upwards, indicating the stock is performing well relative to the market.
Considering Minervini's strategy, which typically involves selling on strength rather than weakness, potential exit points could be:
Break of Trendline: If the stock breaks below the short-term moving average or a trendline support, it could be an indication to exit, especially if the volume increases on the downside.
Technical Weakness: Any bearish reversal patterns, such as a bearish engulfing candle or a high-volume decline through the 50-day MA, could signal an exit point.
Profit Target: If the stock reaches a predetermined profit target, such as a percentage above the buy point or a previous high, it might be a good time to take profits.
Time Stop: If the stock hasn't met the expected price target within a specific time frame, it might be prudent to exit the position to avoid opportunity costs.
Given these considerations, it's also important to have a pre-determined trailing stop-loss to protect profits. If none of the exit criteria have been met but the stock continues to make higher highs and higher lows, maintaining the position with a trailing stop-loss could be a suitable strategy, adjusting the stop-loss upwards as the stock appreciates. Remember to continuously monitor the position and market conditions, as things can change rapidly.
