Ichimoku Watch: Google Poised to Test Kumo Cloud

7月22日Upcoming Earnings

Alphabet Inc. (ticker: GOOG) is scheduled to report earnings after the market closes on 23 July. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is $1.85. The reported EPS for the same quarter a year prior was $1.44.

Price Action Nearing Ichimoku Cloud

The stock is poised to register its first losing month (down -2.2% month to date) following four consecutive winning months. Price action has dipped beneath the Conversion Line (blue at $185.76) and the Base Line (red at $184.47); of note, the former has yet to cross beneath the latter (which can be viewed as a bearish signal).

Price movement also remains below the Lagging Span (dark green at $179.39), a bullish signal, and the stock is nearing the Ichimoku Cloud, which has been in play since the Leading Span A (light green at $185.11) crossed above the Leading Span B (light orange at $179.54) at the beginning of May. The Ichimoku Cloud can offer traders a dynamic support area in uptrends.

Another observation worth highlighting is the support level located within the Ichimoku Cloud at $173.05.

Price Direction?

In light of the visible uptrend, a test of the Ichimoku Cloud could be a factor that prompts buying. Buyers will also likely want to have support tested at $173.05 and also the Conversion Line cross back above the Base Line (by the time the price reaches the Ichimoku Cloud, the Conversion Line would have crossed below the Base Line); traders use an upward crossover as additional strength confirming the Ichimoku Cloud.