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News

Gold prices rise after 3 weeks of decline

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Kroger shares fall despite Q1 sales beat

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JPY gains versus USD on strong trade data

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US dollar gains ahead of central bank meetings

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Asset Watch

Time to recite the Alphabet?

Thursday, March 23, 2023

With the FOMC meeting and Chairman Jerome Powell’s press conference scheduled for Mar. 22, the tug-of-war between inflation and financial stability will be on full display. And as Alphabet nears an inflexion point, the climax could define the short-term fate of the advertising giant.
On the one hand, Stifel issued a buy rating on Mar. 21, and its $130 price target offers a 23% upside from the daily close. The team wrote:
“We don’t expect the public as a whole to change their daily habits regarding search behavior (Google is a verb, at least today),” and we see “substantial opportunity for YouTube and YouTube TV against the combined Linear and CTV+ landscape.”
Alphabet (Google) Stock Chart Trading View

Yet, with support and resistance colliding, a major breakout or breakdown could be imminent.

 

Alphabet ended the Mar. 21 session near its May, June and July 2022 lows, as well as its October 2022 high. Likewise, Alphabet closed above its 200-day moving average on Mar. 21. However, the milestone was present in February, and Alphabet reversed sharply soon after. Therefore, with the heightened volatility that’s common during FOMC meetings, Alphabet should tip its hand in the days ahead.

 

If it holds above the 200-day MA and its May, June and July 2022 lows, a breakout above the February high is likely. If not, Alphabet could stay stuck in its six-month channel and head toward $90.

 

How do you see the drama unfolding?


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