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Google

Market Opportunities - 05/02/2020

05 February, 2020

The example below uses Contracts For Difference (CFDs). Calculations are only on the price of the specific instrument on the date below and calculations indicate a possible opportunity for profit or loss. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.

Google uptrend opportunity based On 1.00 Lot Calculation:

Google stock fell more than 5% on Monday, February 03, creating a Price Gap, after the company reported fourth-quarter results that disappointed Wall Street expectations.

Google’s advertising business and the new data that was revealed about YouTube and Google Cloud revenues broadly disappointed.

YouTube video streaming unit is generating advertising revenue at a pace of $15 billion annually, put it below rough estimates as high as $25 billion. The company also said YouTube, which has 2 billion monthly users, generated about $750 million in subscription and other non-advertising revenue. YouTube has 20 million paid subscribers between YouTube’s Music and Premium ad-free viewing packages, and separately had 2 million paid subscribers for YouTube TV.

Revenue from Google Cloud business increased to 8.9B. Revealing 53% quarterly revenue growth for Google’s cloud services compared with a year ago meant it grew slower than the business it is trying to catch up to, Microsoft Corp’s Azure.

Technically, according to the Daily Chart, the stock price has been increasing since early June 2019. During the last 12 months the stock price has increased 30%, hitting an all-time high of $1500.0 on January 22. The price is in a long upward trend, an inch above 20-day Moving Average, but well above the 50-day and 100-day Moving Average which indicates a strong support level. The relative Strength Index manages to stay above 50, it did not break below it suggesting that the price has strong support at $1400.

In 2019, the Google price has 21 downward Gaps and all of it was closed, mostly within 5 days. Regarding the Gap strategy and historical movement, we believe that the Google price, in the next few days, can go up, toward $1485.0 which represents Resistance 1 level. On the other side, if the price fell below $1400.0, there is a high possibility that the price will fall further toward Support 1 level which is $1375.0.

Google, February 05, 2020
Pivot point: 1,440.00

Google

Weekly

Trend direction

UP

Resistance 3

1,580.00

Resistance 2

1,530.00

Resistance 1

1,492.00

Support 1

1,390.00

Support 2

1,350.00

Support 3

1,300.00

Example of calculation base on weekly trend direction for 1.00 Lot*

Google

Pivot Points

Resistance 3

Resistance 2

Resistance 1

Support 1

Support 2

Support 3

Profit or loss in $

14,000.00

9,000.00

5,200.00

-5,000.00

-9,000.00

-14,000.00

Profit or loss in €*

12,657.66

8,137.06

4,701.41

-4,520.59

-8,137.06

-12,657.66

Profit or loss in £**

10,771.05

6,924.25

4,000.68

-3,846.80

-6,924.25

-10,771.05

* 1.00 lot is equivalent of 100 units
** Calculations for exchange rate used as of 12:30 (GMT) 05/02/2020
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account Manager regarding their use.
*** Please consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Senior Account Manager for more details

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