Stock of the Day: Will Alphabet Break Out?

Alphabet Inc. (NASDAQ: GOOGL ) is trading higher on Wednesday. It has gained about 5% in just three days. The uptrend may continue, as the shares are testing resistance and may be on the verge of a breakout. This is why Alphabet is the Stock of the Day. Resistance is a price level at which a large number of shares are for sale. If a stock is trending higher, it’s because there aren’t enough sell orders to fill all of the buy orders. Those who wish to acquire shares are forced to outbid each other and pay premiums if they want to get sellers interested. This forces the shares into an uptrend. This changes at resistance — and because there are enough sell orders to fill the buy orders, the rally will end or at least pause. There tends to be resistance at price levels that had previously been support. This can be seen on Alphabet’s chart. In April, the $374 level was support. Peopl...