4 Trade Ideas for Alphabet: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Alphabet, $GOOGL, comes into the week pressing against resistance in a channel that has held it for 2 months. The channel is centered on the 38.2% retracement of the move higher from the pandemic low to the top in February. The RSI is about to move into the bullish zone with the MACD positive and rising. The Bollinger Bands® are pretty flat though, not opening higher.

There is resistance at 2390 and 2450 then 2510 and 2600 before 2640 and 2672 then 2763 and 2862. Support lower comes at 2358 and 2290 then 2240 and 2200. Short interest is low under 1%. The stock does not pay a dividend, but the company is expected to report earnings next on July 25th after the market closes.

The July options chain shows the biggest open interest at 2300 then 2320 and 2350 on the put side, and then much bigger at 2400 followed by 2500 and 2425 on the call side. The July 29 Expiry shows an expected $205 move by expiration or just over 8.5%. It has biggest open interest at 2300 on the put side and 2500 then 2400 on the call side, but action has been light. The August chain has biggest open interest at the 2400 put then the 2300. While on the call side it is biggest at 2500 then 2300 and 2400.

Alphabet, Ticker: $GOOGL

Trade Idea 1: Buy the stock on a move over 2400 with a stop at 2350.

Trade Idea 2: Buy the stock on a move over 2400 and add a July 29 Expiry 2350/2290 Put Spread ($30.20) while selling the July 29 Expiry 2600 Call (29.60).

Trade Idea 3: Buy the July 22 Expiry/August 2500 Call Calendar ($50.00) while selling the July 29 Expiry 2200 Put ($37.00).

Trade Idea 4: Buy the August 2100/2400/2500 Call Spread Risk Reversal ($10.00).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of the 3rd Quarter in the books, saw equity markets showed strength with a multi-day move to the upside.

Elsewhere look for Gold to continue its pullback while Crude Oil continues its short term drop. The US Dollar Index continues to race to the upside while US Treasuries continue their downtrend. The Shanghai Composite looks to pause in its uptrend while Emerging Markets continue to trend lower.

The Volatility Index looks to remain slightly elevated but moving lower making the path easier for equity markets to the upside. Their charts look promising but not yet trustworthy on the shorter timeframe. On the longer timeframe the IWM, the QQQ and the SPY all remain in consolidation at key retracement levels. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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