An impromptu unplanned stock analysis on Alphabet Google.
Due to the current violent price movements in the share, and because many probably the finger itches to go all-in immediately here on the quick made analysis.
https://investorsapiens.de/alphabet-aktie-chartanalyse-technische-analyse/
If you have not noticed, the current price drop comes after yesterday's live show in Paris.
Google presented its AI Brad in a live show and wanted to stop the unchecked triumphant march of ChatGPT. This failed because Brad answered 1 of 3 questions incorrectly and thus probably did not meet expectations.
This has led to the fact that the actually perfect chart picture of Alphabet was noticeably affected. In the long term, it still looks good from my point of view, but in the short term in the daily chart, it looks very suboptimal.
I suspect that Google will not let this stand and will take countermeasures. Hopefully, we will soon find out whether this succeeds.
Conclusion of the analysis:
The first battle of the ChatGPT AI against Brad goes to Microsoft. The live presentation of Alphabet's AI Brad led to over 13% share price loss within 24 hours with an incorrect answer to the question about the James Webb Space Telescope. With its investment in the AI ChatGPT, Microsoft remains in the lead for the time being, Google's first reaction fails.
The analyst sentiment is clearly positive. The price target, at 31.43% at $125 for the year, is in order. Whether the analysts adjust the assessment after yesterday's presentation remains to be seen.
It is particularly exciting in the Alphabet chart analysis:
In the long-term weekly chart, the MACD and the RSI indicator are positive, with the formation of the double bottom at the Fibonacci retracement 50% and the breakout from the downward trend, the 16-month correction would be completed. With the price drop due to the failed show in Paris, the short-term chart picture clouds significantly.
In the short-term daily chart, we see negative MACD and RSI indicators, which means that the rise in recent weeks led to an overbought situation and the momentum has tipped. The reversion to the downtrend looks bad in this context. If Google does not manage to calm down the next few days, a retest of the previous bottom at the Fibo 50% may take place.
In the long term, the stock continues to look good, in the short term, the risk of further setbacks is quite realistic due to the chart situation and the news. At the same time, however, this could also be an opportunity for risk-averse long-term investors to take advantage of the setback.
This is not an investment advice and not a buy recommendation.
