Last week we provided a short-term trading idea on Apple which went very well.
This week I want to provide something similar on Alphabet. The only difference is that this time round we have a very good indicator in our favour – the infamous Death Cross!
A death cross happens when a shorter moving average indicator crosses downwards over the longer one.
On the 12th of September, and the 25th of October, the 20 MA (blue line) crossed downwards the 50 first (red) and the 200 after (green).
These were very good signals and in fact the price continued to decline. We now have a golden opportunity as the strongest of all signals is forming – from the chart we can see that the 50 MA is just crossing over the 200 MA.
Personally, I think that there is more room for the share price to trade lower and it would be a good opportunity for a short-term SHORT trade.
Let us know your thoughts in the comments box below!
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