SerpApi.Org
As Alphabet Inc. (GOOGL) (GOOG) prepares to release its Q2 earnings on Wednesday after the market closes, technical analysts are keeping a close eye on a pivotal chart setup.
According to market technician David Keller, the stock's current trajectory remains uninspiring unless it can break through a key resistance level, noting that GOOGL is forming an inverted head and shoulders pattern.
However, he emphasized that the setup is "meh" until the price can decisively break above the clearly articulated neckline at $370 per share. Shares were hovering around $349 in Tuesday midafternoon trading.
Breaking the $370 mark would also push the stock back above its 50-day moving average, which currently sits near $368.
Meanwhile, the options market is pricing in an average post-earnings move of 5.4% in either direction for Alphabet (GOOGL).
Investors will closely watch Alphabet's (GOOGL) earnings for updates on Google Cloud growth, Gemini AI initiatives and capital allocation. Wall Street expects the company to report earnings of $3.05 per share on $116.98B in revenue, representing 21.3% year-over-year revenue growth for the quarter.
