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July 24 Chart of the Day - Google

Alphabet Inc. (Google ticker GOOGL) reports earnings July 25th after market close.  The charts below are for its Class A shares which since October 2022 have been making a series of higher highs and higher lows until recently meeting some resistance in the $125 - $130 area and consolidating before deciding on a direction for its next move.

By using the "at the money" straddle options pricing, the market is implying about a $7.40 move in either direction between now and the end of this week (as notated on chart at the time of this writing.)

While the market sentiment has been bullish during the past 6-9 months it wouldn't surprise us to see a period of consolidation between $105-$130 simply by "looking left" on the chart and seeing the structure from last year.  Alternatively, it also wouldn't surprise us to see price run up to the $140 area.

Ultimately, as the saying goes, price can do whatever it wants whenever it wants and as traders our primary job is to respond to it, not predict it.

So what's next?

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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