Current trend

Shares of the American holding Alphabet Inc. are trading in a correction trend at 166.00.

A federal court in California has banned the company from exercising monopoly control over the Play Store and Google Pay services. The ruling comes into effect on November 1, and it obliges the corporation to allow users to download competing third-party application platforms on the Android platform, as well as use other payment methods. In addition, the document prohibits paying compensation to manufacturers for pre-installing the Google Play app store and sharing revenues from the Play Store. Management has asked the court to suspend the decision until an appeal is filed, which can be done before November 1. Otherwise, this decision will significantly weaken the monopoly position of Alphabet Inc., putting pressure on its revenues.

The financial report is due on October 22. According to preliminary estimates, revenue increased from 84.74B dollars to 86.35B dollars, and the expected earnings per share (EPS) will be 1.84 dollars compared to 1.89 dollars previously. On September 16, investors received quarterly dividends of 0.2 dollars per share or 0.53% per annum, the second time in the company’s recent history, which increases the likelihood of the company switching to permanent payments.

Support and resistance

On the daily chart, the correction continues as part of working out the exit from the reversal pattern Head and shoulders with the Neckline at 170.00.

Technical indicators maintain an unstable buy signal: the EMA oscillation range of the Alligator indicator is expanding in the direction of growth, and the AO histogram is forming ascending bars in the positive zone.

Resistance levels: 169.60, 180.00.

Support levels: 163.30, 149.70.

Trading tips

Long positions may be opened after the price rises and consolidates above 169.60, with the target at 180.00 and stop loss 165.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 163.30, with the target at 149.70 and stop loss 168.00.