GOOGL Technical Analysis for Tomorrow - Dec. 231. 1-Hour Timeframe
* Current Price: $192.70
* Key Resistance Levels:
* $192.92: Immediate resistance level.
* $195.00–$196.00: Resistance zone near previous highs.
* $201.42: Psychological and structural resistance.
* Key Support Levels:
* $188.58: Nearest support level, previously tested.
* $183.92: Stronger support from previous consolidation.
2. Key Observations
1. Trend Analysis:
* GOOGL recently broke out of a descending channel, indicating a potential shift from bearish to bullish momentum.
* The breakout is accompanied by higher-than-usual volume, signaling interest from buyers.
2. Stochastic Oscillator:
* Currently nearing the overbought zone, which suggests the possibility of a short-term pullback before further upward movement.
3. Volume Analysis:
* The breakout occurred with a noticeable spike in volume, indicating strong bullish intent.
3. My Thoughts on GOOGL’s Direction
* Bullish Bias:
GOOGL has shown strength breaking out of the descending channel and moving toward resistance at $192.92. If it holds above this level, I expect it to test $195.00 and potentially $196.00 in the near term.
* Possible Pullback:
With the Stochastic Oscillator in the overbought zone, a pullback to $188.58 or even $186.00 is possible before resuming upward momentum.
Overall, I lean bullish for GOOGL, but a short-term pullback before continuation cannot be ruled out.
4. Trade Scenarios
Bullish Scenario:
* Entry: On a breakout above $192.92 with volume confirmation.
* Targets: $195.00, then $196.00.
* Stop-Loss: Below $191.00 to minimize downside risk.
Bearish Scenario:
* Entry: If GOOGL fails to break $192.92 and rejects with significant selling pressure.
* Targets: $188.58, then $183.92.
* Stop-Loss: Above $193.50.
5. Key Levels to Watch
* Support: $188.58 and $183.92.
* Resistance: $192.92, $195.00, and $201.42.
GOOGL is showing signs of bullish momentum with its breakout from the descending channel, but a short-term pullback due to overbought conditions is possible. I expect it to test $195.00 soon if $192.92 is cleared decisively. Traders should keep an eye on volume and price action at these key levels to determine the next move.
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Option Trading Scalping and Long/Short Strategy for GOOGL
1. Scalping Strategy for Options Trading
Key Observations from GEX Levels and Chart
* Resistance Levels:
* $195.00: Strong 2nd Call Wall and significant resistance.
* $197.50: Higher resistance near the next GEX (Gamma Exposure) level.
* $202.50: 3rd Call Wall and a strong psychological barrier.
* Support Levels:
* $190.00: Key level with moderate support (16.33% GEX9).
* $187.50: High Volume Level (HVL) and key support zone.
* $182.50: 2nd Put Wall, providing stronger downside support.
* Volume and Momentum:
* Momentum indicates bullish activity, with price moving toward $195.00 resistance.
* Options Oscillator shows 7.6% calls and a neutral-to-bullish sentiment.
Scalping Call Options (Bullish Setup):
* Entry: On a breakout above $195.00 with volume confirmation and momentum.
* Target: $197.50 (first target) and $202.50 (extended target).
* Stop-Loss: Below $193.50 to limit downside risk.
Why It Works:
The breakout above $195.00 aligns with a gamma squeeze toward higher levels, as there’s a buildup of positive gamma above $195.00.
Scalping Put Options (Bearish Setup):
* Entry: On rejection at $195.00 or breakdown below $190.00 with strong volume.
* Target: $187.50 (HVL) and $185.00 (next support zone).
* Stop-Loss: Above $195.50.
Why It Works:
A rejection at $195.00 signals resistance and potential profit-taking, with a move targeting GEX support levels.
2. Long/Short Strategy
Long Strategy (Bullish Case):
* Entry: Enter long positions on sustained price action above $195.00.
* Targets:
* Short-Term: $197.50 (near-term resistance).
* Extended: $202.50 and $205.00 (3rd Call Wall and GEX resistance).
* Stop-Loss: Below $193.50 for risk management.
Why It Works:
A breakout above $195.00 signals continued bullish momentum, with GEX indicating higher gamma exposure driving prices upward.
Short Strategy (Bearish Case):
* Entry: Enter short positions on rejection at $195.00 or a breakdown below $190.00.
* Targets:
* Short-Term: $187.50 (HVL and moderate support).
* Extended: $182.50 (2nd Put Wall support).
* Stop-Loss: Above $195.50 for rejection trades, or above $191.00 for breakdown trades.
Why It Works:
Rejection or a failed breakout at $195.00 aligns with bearish sentiment, targeting downside gamma levels for support.
3. Additional Notes
* Scalping Tips:
* Use short-dated options (7–14 DTE) for quick price moves.
* Focus on at-the-money (ATM) strikes for the best risk/reward ratio.
* Volume Confirmation:
* Ensure volume spikes at key levels (e.g., $195.00 for breakout or rejection).
* Risk Management:
* Stick to tight stop-losses to limit losses in scalping.
* For long/short trades, scale into positions at support/resistance levels.
Conclusion
* Bullish Scenario: Breakout above $195.00 targets $197.50 and $202.50.
* Bearish Scenario: Rejection at $195.00 or breakdown below $190.00 targets $187.50 and $182.50.
Focus on volume and price action near key GEX levels to guide your entries and exits.
Disclaimer: This analysis is for educational purposes only and does not constitute financial advice. Please trade responsibly and manage your risk appropriately.
