Takes centre stage tomorrow

Alphabet is set to take centre stage tomorrow as its earnings are highly anticipated. Currently, its shares are trading at around $180.14 a share in the pre-market. We can see on the weekly chart that the supportive trendline has now been broken, and bearish momentum is now present. Depending on earnings, Alphabet may experience a deeper decline heading into the seasonally volatile Q3. The next area of support is highlighted by the green channel with a price range of $169.44-$164.01. A fall into this area would imply a decline of 6-9% from current levels. As the momentum is starting to fade, it would be unreliable to point out any resistance until after the earnings. Following the earnings, any signs of consolidation would perhaps create optimism to aim for any resistance. With the price moving below April’s high of $181.85, it can be argued that this is now the near-term resistance. Looking at the technical indicators, there is some concern when analysing the MACD. It seems like the MACD could turn negative in the coming weeks, weighing on the stock with regards to momentum. On the other hand, the RSI is still positive as it reads 62, providing some balance.