Thursday, January 14, 2016

Annual Trading Forecast on Google (2016)

Google, now called Alphabet Inc. (NASDAQ:GOOG), has a bearish signal on it. The signal is early enough for astute traders to catch a smooth, long-term journey, to the downside. There is a potential that the market would go further downwards from here.

The ADX period 14 is almost going above the level 20, which means that while the momentum is not currently great, it is bound to increase. The DM- is clearly above the DM+, showing that the bear has an upper hand. The MACD (default parameters), has its signal lines and histogram below its zero line. There is a Bearish Confirmation Pattern in the market, which means that the price could experience a large pullback along the way.

Google stock would trend lower and lower this year, bringing profits to seller and losses to buyers, plus buy-and-hold investors. Although it would be nice to believe otherwise, drawdowns and occasional losses are part of trading.  We need to be objective. Small losses should not turn our life upside down. Small losses might make us look dejected, helpless and peevish. Truly, it does not mean all that have to do with us are doomed since the effects are fleeting.

This forecast is ended by the quote below:

“Any successful, experienced trader will tell you that although properly identifying buy/sell signals is important, it’s not the key to being successful. Instead, the way you manage each trade is what will determine your success.” – Andy Jordan

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders

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