The Fall of Google: 40% Crash next ??5 days before earnings, a bold call... or is it.
On October 22nd, morningstar.com a leading provider of independent investment insights with 10.9 million subscribers said:
“With its 4-star rating, we believe Alphabet’s stock is undervalued compared with our long-term fair value estimate of $209 per share”
source: tinyurl.com
Meanwhile on October 23rd Without Worries with his 14k followers says.. a 40% correction to $100 is probable.
Why bearish?
Before the TA, there be some fundamentals to consider. I’m sure it cannot escaped your attention that Google has become a platform for your attention rather a provider of results. Advertisements plaster the screen to most search enquires.
Mr Who the Boss “Why Google search is falling apart” makes an excellent deep dive: tinyurl.com
The TA
On the 2 week chart above:
1) Price action and RSI support fails.
2) Regular bearish divergence, as measured over several months.
3) Uptrend channel breakdown with confirmation. This forecast projects price action to correct circa 40% to $96.
4) The 3 month chart (below). Can’t ignore this beautiful signal. This candle is named as the “hanging man”, it is an indication of exhausted buyers. This should not be surprising after 6 straight green quarterly candles. It is fairly obvious what should now occur, look left.
Is it possible price action continues to grow? Sure.
Is it probable? No.
Ww
3 month hanging man candle