Google-parent Alphabet Inc.’s stock GOOGL, +0.84% rose 0.7% in afternoon trade, putting it on track to close above its 200-day moving average (DMA) for the first time six weeks. The 200-DMA, which currently extends to $1,125.29, is a widely watched technical indicator that many chart watchers use as a guide to the longer-term trend. However, the stock still remains just below its shorter-term trend tracker, the 50-DMA ($1,131.61). In addition, the 50-DMA is on track to cross below the 200-DMA within the next two sessions under current trajectories to produce a "death cross" pattern, which many chart watchers view as marking the spot a short-term pullback transitions to a longer-term downtrend. The stock has bounced 8.8% since closing at a 5-month low of $1,038.74 on June 3, but remained 12.8% below its April 29 record close of $1.296.20. Meanwhile, the other so-called "FAANG" stocks–Facebook Inc. FB, -0.24% Apple Inc. AAPL, +0.27% Amazon.com Inc. AMZN, +0.31% and Netflix Inc. NFLX, -0.27%–were all trading well above both their respective 200-DMAs and 50-DMAs, and the 50-DMAs were well above the 200-DMAs. Alphabet’s stock has slipped 6.6% over the past three months, while the Nasdaq Composite COMP, -0.06% has edged up 2.8% and the Dow Jones Industrial Average DJIA, -0.12% has gained 1.9%.
Source: Read Full Article