Google Trying to Break Out of Downward Trend Ahead of Earnings
No matter how hard I try, I can’t seem to stop calling it Google. I know the company name is Alphabet (Nasdaq: GOOG) now, but I still have to call it Google. I wrote about Google last month and how important the $1,000 level seemed to be for the stock. It did drop below that key level for a few days at the end of December, but it has since bounced back. Now the stock could be facing resistance from a downward sloped trend line and earnings are right around the corner.
If we look at the daily chart for the last few months, the highs from August, October, December, and this week all connect very neatly. This trend line could act as resistance in the coming days as technicians take note.
The other factor happening at these high points is that the daily stochastic readings have been at overbought levels and made bearish crossovers before turning lower.
The company is set to report earnings on January 30, but I doubt the stock will still be hanging around the trend line by that time. It could break out of the downward trend, or if the pattern holds it will turn lower over the next few weeks.
As far as the fundamentals, Google has some of the best fundamentals of any publicly traded stock. The company gets an EPS rating of an 87 from Investor’s Business Daily and it gets an A in IBD’s SMR rating system. The 87 EPS rating means the company’s earnings have grown faster than 87% of companies while the A rating puts in the top 20% for sales growth, profit margin, and return on equity.
The company has been among the best in the fundamental ratings for quite some time now, but that didn’t keep the stock from dropping almost 24% from the July high to the December low.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
GOOG's Stochastic Oscillator sits in oversold zone for 2 days
Be on the lookout for a price bounce soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +2.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where GOOG advanced for three days, in 240 of 355 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
GOOG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 04, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GOOG as a result. In 41 of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 55%.
The Moving Average Convergence Divergence Histogram (MACD) for GOOG turned negative on August 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 51 similar instances when the indicator turned negative. In 33 of the 51 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
GOOG moved below its 50-day moving average on August 11, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GOOG crossed bearishly below the 50-day moving average on August 17, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 64%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GOOG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
The Aroon Indicator for GOOG entered a downward trend on September 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 4 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock better than average.
The Tickeron Valuation Rating of 19 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.592) is normal, around the industry mean (5.843). P/E Ratio (16.831) is within average values for comparable stocks, (27.560). Projected Growth (PEG Ratio) (1.199) is also within normal values, averaging (27.634). Dividend Yield (0.003) settles around the average of (0.048) among similar stocks. P/S Ratio (9.208) is also within normal values, averaging (69.922).
The Tickeron SMR rating for this company is 21 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. GOOG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 83 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a holding company with interests in software, health care, transportation and other technologies
Industry InternetSoftwareServices
Advertisement