GOOGL at a Key Inflection Point! Trade Setups for Jan 23 Analysis:
Google (GOOGL) is currently trading near a critical resistance level at $200, which coincides with the highest positive Gamma Exposure (GEX) and a significant psychological round number. The price action suggests a potential breakout or rejection scenario.
Technical Observations:
1. Trend Analysis:
* GOOGL is forming an ascending triangle pattern on the hourly chart, indicating bullish consolidation.
* Higher lows reinforce buying pressure.
2. Key Levels:
* Resistance: $202 (recent high and 3rd call wall)
* Support: $192.5 (major support level and put gamma wall), $187.3 (next key support)
3. Indicators:
* MACD: Shows a weak bullish crossover, suggesting momentum is building but not yet decisive.
* Stochastic RSI: In the overbought zone, hinting at potential short-term exhaustion.
4. Volume Profile:
* Increased volume near $200 suggests significant market interest at this level.
GEX Insights:
1. Call Walls:
* Key Call Levels: $202 (3rd call wall) and $205 (2nd call wall). These levels act as resistance where call sellers might hedge, amplifying upward movement if breached.
2. Put Walls:
* Key Put Levels: $192.5 and $185. These serve as support levels where put sellers may defend prices.
3. IVR and Options Activity:
* IVR: 53 (indicating above-average implied volatility).
* Options Flow: Call volume dominates with 27.6% skew, highlighting bullish sentiment in the short term.
Trade Scenarios:
Bullish Scenario:
* Entry: Break above $202 with strong volume.
* Target: $205 (next resistance) and $210 (longer-term resistance).
* Stop-Loss: Below $198 to minimize risk.
Bearish Scenario:
* Entry: Rejection at $200-$202.
* Target: $192.5 (support) and $187.3 (next key level).
* Stop-Loss: Above $203 to limit losses.
Actionable Suggestions:
* Monitor price action around $200-$202. A decisive move above or rejection will define the next direction.
* Keep an eye on options flow. Increasing call open interest near $205 may signal bullish continuation.
* Be cautious of overbought signals from the Stochastic RSI.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Always do your own research and manage your risk before trading.
