On 2 February, Alphabet published a quarterly reporting. One the wave of successful outcomes of the year, stocks strove upward: the daily increase turned to be maximum since 2015.
Also, the company declared the stock split of 1 to 20: stocks will be more liquid and available for a mass investor.
However, the situation now is that the rapid growth of Alphabet stocks became a reason for market participants to sell stocks rather than reassess their future towards increasing. An increase in the level of rates in economics with the high technology sector which suffers the greatest losses has an additional negative impact on IT companies.
A half of the bounce from minimums of January has already been mitigated. The “bearish engulfing” increases downward risks. The nearest target is the gap level at 2760. In case of the breakdown of this level, the next support could be the line of the 200-daily moving average at 2650.
This content is for informational purposes only and is not intended to be investing advice.
