In a sudden turn of events, Investopedia looks to be giving one of the FANG stocks a major downgrade. They project that Google’s parent company, Alphabet, may be on the precipice of a major drop.
Alphabet has bounced off $920 multiple times over the last few months, making that a solid support level. But if this key level breaks and shares trades below it, that’s a sign that the stock is heading much lower. When buyers can no longer keep Alphabet above this level, it means supply is much greater than demand, and sellers are in full control.
This news is quite shocking, as the company has been one of the tech world’s major winners for years. However, it is not that surprising that a stock with so much hype behind it may be finding itself open to such a dramatic shift.
Take a look at volume if and when the stock hits that support level of $920. When a move happens on strong volume it tends to indicate the breakout/breakdown happened with strong conviction. But, a low volume breakout/breakdown does not have much significance and is more prone to a reversal. It’s important to prepare for this $920 level and have a game plan for each of the scenarios listed above.
If you are an investor in Alphabet, be sure to watch for that $920 threshold and be ready for whatever may happen. To learn more go to investopedia.com, but before you do, why not sign up for our free newsletter and receive more updates such as these? You will get useful information delivered straight to your inbox.
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