Alphabet Stock Begins 2018 With Positive Charts

Internet content giant Alphabet Inc. was a strong momentum stock in 2017 and is set up for continued upward momentum in 2018. The company provides a suite of applications including YouTube, Maps, Ads and many others.

The stock closed 2017 at $1,053.40, up 32.9% for the year and in bull market territory at 32.2% above its 52-week low of $796.90 set on Jan. 3, 2017. The stock set its all-time intraday high of $1,086.49 on Dec. 18 and is currently trading at 3% below this level. (See also: Amazon’s Digital Ad Push Threatens Facebook, Google.)

Here’s how the numbers worked in 2017.

Alphabet shares closed 2016 at $792.45, and my annual risky level for 2017 was $899.21. After the close on April 27, the company reported better-then-expected earnings, and the open on April 28 was a price gap above this level, never to be tested again. At mid-year, the stock closed at $929.68, and my semiannual risky level of $1,050.84 became my upside target, which was first tested on Oct. 27. This level plus a fourth quarter pivot of $1,042.93 became magnets for the remainder of 2017.


Alphabet stock is not a bargain given a P/E ratio of 50.77, although it has a positive but overbought weekly chart. …read more

Read more here: Alphabet Stock Begins 2018 With Positive Charts

Category: GOOGL

Leave a Reply

%d bloggers like this: