Google’s parent company Alphabet is trading 1.29% higher on the day after reporting record quarterly revenue and profits.
Google share price saw an uptick as a spike in ad spending, boosted by the pandemic-induced switch to online shopping, pushed revenues up by 61.6% to $61.88 billion, well above estimates of $56.16 billion. Profits rose $18.5 billion, or earnings of $27.26 per share that exceeded estimates of $19.34 per share.
Online shopping platforms got busier as governments implemented strict lockdowns. This attracted more vendors and advertisers via Youtube and Google Search. Google Cloud also saw a reduction in its operating loss to $591 million during the quarter.
The Google share price set a new all-time high on Tuesday at 2800.22. A selloff on Tuesday completed the bearish engulfing candlestick.
This has been followed by choppy price action, as the active daily candle has formed a doji. A bearish outside day candle is required to initiate contact with the 2663.78 support level (14 July high), with 2700 (27 July low and psychological support) forming an intervening pitstop.
Only a breakdown of the 2663.78 support (where it interfaces with the ascending trendline that connects lows of 12/19 May, 1/19 July) allows the correction to proceed further, which lines up potential targets at 2554.89-2566.29, and the neckline of the failed rounding top at 2493.02.
On the other hand, a price bounce on the 2663.78/ascending trendline support allows for a retest of 2700.00 and 2800.00, with a break of the latter setting new highs that potentially target the 141.4% Fibonacci extension at 2851.00.
