{"id":10123,"date":"2022-07-07T19:19:47","date_gmt":"2022-07-08T00:19:47","guid":{"rendered":"http:\/\/blog.jlbn.net\/?p=10123"},"modified":"2022-07-07T19:19:49","modified_gmt":"2022-07-08T00:19:49","slug":"alphabet-stock-is-setting-up-for-a-trade-ahead-of-stock-split","status":"publish","type":"post","link":"http:\/\/blog.jlbn.net\/?p=10123","title":{"rendered":"Alphabet Stock Is Setting Up for a Trade Ahead of Stock Split"},"content":{"rendered":"\n

Alphabet stock has an interesting setup before the tech giant splits the shares. Here’s the trade to know.<\/em><\/strong><\/p>\n\n\n\n

The search, cloud and advertising giant’s shares gained more than 4% on Tuesday. And in so doing they reclaimed their 10-day and 21-day moving averages. <\/p>\n\n\n\n

But they stopped right at their 50-day.<\/p>\n\n\n\n

This left traders in a quandary. Will Alphabet stock be rejected by this key moving average or will it continue higher?<\/p>\n\n\n\n

Let’s add a catalyst to the latter argument: the Mountain View, Calif., company plans a\u00a020-for-1 stock split on July 18<\/a>, just 12 days from now.<\/p>\n\n\n\n

For what it\u2019s worth, when Amazon’s  (AMZN<\/a><\/strong>) – Get Amazon.com Inc. Report<\/a> 20-for-1 split was set for June, the shares began to rally<\/a> seven trading sessions — 12 days — ahead of the split. Further, they rallied roughly 25% in that span, although the move came alongside a notable rally in the broader market as well.<\/p>\n\n\n\n

Could Alphabet be set for a similar type of move? <\/p>\n\n\n\n

I don\u2019t think we\u2019ll see a 20%-plus gain in the coming week, but we could definitely see some upside follow-through.<\/p>\n\n\n\n

Trading Alphabet Stock<\/h2>\n\n\n\n
\"\"\/
Daily chart of Alphabet (GOOGL) stock.Chart courtesy of TrendSpider.com<\/figcaption><\/figure>\n\n\n\n

As I look at the chart, yesterday\u2019s rally came at precisely the right time. The market was rolling over and at must-hold support, while Alphabet stock was sitting on uptrend support (blue line).<\/p>\n\n\n\n

Support held and the\u00a0 shares pressed higher and closed near the highs of the day. So did the market.\u00a0<\/p>\n\n\n\n

The opening dip was bought<\/a> on Wednesday morning and now the shares are threatening to rotate over Tuesday\u2019s high.<\/p>\n\n\n\n

If Alphabet stock goes daily-up over $2,267.53, it could push up toward $2,300.<\/p>\n\n\n\n

But the level I\u2019m truly focused on in that scenario is $2,375. That comes into play near last week\u2019s high, but it\u2019s been resistance for several months now. A rally to that level will make for a nice trade and it creates the potential for even more upside.<\/p>\n\n\n\n

The June high sits up near $2,387. If Alphabet stock runs to $2,375, then a monthly-up rotation isn\u2019t that far off. If that triggers, it could open the door to $2,500, which was major support in the first quarter.<\/p>\n\n\n\n

A caveat: This is the rosy scenario.<\/p>\n\n\n\n

We also must remember that Alphabet is in a downtrend and a bear market, and such a rally may have trouble taking place. That’s even as Alphabet and the overall market are due for a bounce and even as the company has a stock split coming up.<\/p>\n\n\n\n

On the plus side, Alphabet stock has created a series of higher lows and did not make new lows in June. The broad market, on the other hand, set a series of lower lows.<\/p>\n\n\n\n

On the downside, a break of the 10-day and 21-day moving averages suggests caution and increases the odds that the stock retests uptrend support.<\/p>\n\n\n\n

A break of uptrend support could put the June low in play near $2,100, followed by the 2022 low near $2,037.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Alphabet stock has an interesting setup before the tech giant splits the shares. Here’s the trade to know. The search,<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[254,3421,3422],"tags":[1102,888,3425],"_links":{"self":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10123"}],"collection":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10123"}],"version-history":[{"count":1,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10123\/revisions"}],"predecessor-version":[{"id":10124,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=\/wp\/v2\/posts\/10123\/revisions\/10124"}],"wp:attachment":[{"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10123"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.jlbn.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}