GOOGLE: Attention!!! Bullish force assured!!Alphabet, Google's parent company, presented its results for the first quarter of the year this Thursday, in which it obtained a profit of $34.540 billion, representing a 46% increase compared to the $23.662 billion obtained in the same period of the previous year.
The company also exceeded expectations with its revenue figure, which stood at $90.234 billion, after registering a year-on-year increase of 12%, while the consensus expected it to be $89.120 billion. For its part, operating profit grew to $30.606 billion, with a margin of 34%.
In summary: VERY GOOD RESULTS, and if we add to this the favorable moment we are experiencing due to the TARIFF issue... it WILL go up, no doubt!
---> What is the technical aspect?
If we observe the H1 timeframe chart and its summary table, its trend was clearly bearish, but showing THE FIRST BULLISH SIGNALS. On Wednesday, the bullish force (Bull) signal appeared on the H1 chart, and yesterday, Thursday, it appeared on the H4 chart. Although its trend is still bearish, since its FORCE is now bullish, we can start thinking that its trend could change to BULLISH in the coming days if there are NO NEWS that get in the way.
---> Where do we make the entry?
As the results were published at the close of the American market, today it is most likely to open with a bullish GAP. Here we can do 2 things:
1) If the gap is small, enter at the opening.
2) If the gap is VERY LARGE, wait for a pullback during the day to enter at a better price.
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Strategy to follow:
ENTRY: We will open 2 long positions in the current zone or taking advantage of a pullback in price (depending on the market gap).
POSITION 1 (TP1): We close the first position in the 183 zone (+12%)
--> Stop Loss at 148 (-8%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-8%) (coinciding with 148 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (183).
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CLARIFICATIONS OF THE SETUP
*** How to know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by 1 a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: If the dynamic Stop Loss is at -1%, it means that if the price makes a downward movement of -1%, the position will be closed. If the price goes up, the Stop Loss also goes up to maintain that -1% on the rises, therefore, the risk is increasingly lower until the position enters profits. In this way, very solid and stable trends in the price can be exploited, maximizing profits.
