Alphabet is a strong buy as the stock builds bullish momentum

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Alphabet Inc. (NASDAQ:GOOG) is at an important price movement signal with MA 10 interacting with MA 50. For Google, the interaction between MA 10 and MA 50 has been consistently considered as a buy signal since the MA 10 never seems to slip below MA 50. On the other hand, the MA 10 moving below MA 20 is considered a signal to sell.

Google at a critical buying signal, as MA 10 touches MA 50

Source – TradingView

At a price of $2729, the tech giant is a buy. At this price, the MA 10 is $2,710, and MA 50 is $2,703. This is an indication that Google will pivot from this price level and rally to find a new high. The price level coincides with two important momentum indicators in the RSI and MACD.

The RSI at 50.06 just crossed above the 14-day SMA at 49.11. This signals a buy, with the expectation of bullish momentum until the RSI hits 70. From the MACD, the company appears to have completed a decline as the line turns up to interact with the signal.

The momentum towards convergence is an early indicator of bullish momentum. The last time this pattern was observed was in April 2020 which was followed by a bullish pattern lasting more than a year.

Summary

We strongly recommend buying Google at the current price levels. For the technology giant, the price level offers one of the unique moments for new investors to join. Existing investors should hold the stock until the RSI hits 70 again.

The post Alphabet is a strong buy as the stock builds bullish momentum appeared first on Invezz.

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