Alphabet (NASDAQ: GOOGL) traded 4% higher on Tuesday morning, after posting earnings that beat Wall Street expectations after accounting for a $5 billion fine.
The company reported earnings per share of $4.54 and total revenue of $26.2 billion, compared to analyst estimates of $9.66 and $25.6 billion.
While Alphabet / Google technically missed expectations, the earnings figures account for a record antitrust fine levied by the European Union. Without the fine, earnings would have come to $11.75 per share, easily exceeding analyst estimates.
In analyzing GOOGL’s market cycles, we can see that the stock’s price action has been positively configured. However this pattern is mature, given that we are late in the intermediate market cycle. We see the $1280 resistance level holding.
A pullback to the 23% Fibonacci level looks reasonable, in part because the trend has been higher.
As such, the $1212 level could be a good spot to add some risk, especially for those that see recent momentum continuing.
Alphabet (GOOGL) Stock Chart with Weekly Bars
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