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 at resistance and over the 50 day SMA. This is after a bounce following a nearly 38.2% retracement of the last leg higher. It has a RSI rising in the bullish zone, but viewed cautiously as it is yet to make a higher high. The MACD is positive and rising. There is resistance at 320 and 327 then 338 and 349. Support lower is at 314 and 310. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of just 0.26% and has traded ex-dividend since March 9th.

The company is expected to report earnings next on April 29th. The April options chain shows open interest spread from 320 to below 290 on the put side and focused at 330 then 320 on the call side. In the May chain open interest is biggest at the 300 then 280 put strikes and at 330 then 320 and 310 on the call side. Finally, in the June chain, the 280 put strike and 340 call strikes.

Alphabet, Ticker: $GOOGL

Trade Idea 1: Buy the stock on a move over 320 with a stop at 308.

Trade Idea 2: Buy the stock on a move over 320 and add a May 310/290 Put Spread ($6.00) while also selling the June 355 Calls ($5.95).

Trade Idea 3: Buy the April/May 325 Call Calendar ($9.35) while selling the May 290 Puts ($4.20).

Trade Idea 4: Buy the June 285//325/340 Call Spread Risk Reversal (20 cent credit).

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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 heading into the next round of earnings season and amidst an unusual ceasefire, saw equities show strength to follow up last week’s green shoots.

Elsewhere, look for Gold to continue to recover from the pullback while Crude Oil hangs on to the uptrend, pulling back in consolidation. The US Dollar Index looks to continue to drift lower in consolidation while US Treasuries hold over 15 month support like nothing is happening. The Shanghai Composite looks to continue a short term downtrend at possible support while Emerging Markets reverse higher to resume their uptrend.

The Volatility Index looks to continue to improve, moving out of elevated territory relieving the pressure on equities. The charts of the SPY and the QQQ are adding to their gains off the March bottom on the longer timeframe as bearish momentum transitions to bullish while the IWM continues to resume its uptrend. On the shorter timeframe the SPY and the QQQ made a major move over key moving averages and looks primed to continue, while the IWM holds its head above them with relative strength rising out of the bottom. 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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