The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat GOOG price to a 12.5% increase. Let’s use the Hughes Optioneering calculator to look at the potential returns for a GOOG call option purchase. Now, since GOOG’s 24/52 Day MACD is trading above the 18-Day EMA this means the stock’s bullish rally will likely continue. Our initial price target for GOOG stock is 130.00 per share. Since GOOG’s bullish run is likely to continue, the stock should be purchased.
When the gap between the two indicators begins to narrow, this typically indicates a crossover of the indicator lines could happen soon.Īs long as the 24/52 Day MACD line remains above the 18-Day EMA, the stock is more likely to keep trading at new highs in the coming days and weeks. When the histogram’s bars begin to shrink this indicates a narrowing of the gap between the 24/52 Day MACD and the 18-Day EMA and a slowing of the stock’s momentum. As the lines begin to separate, the bars grow in height, indicating a widening gap and acceleration for the stock’s momentum. When a crossover initially occurs, the histogram’s bar will be near flat as the two indicator lines have converged. This portion of the chart helps to illustrate the distance between the 24/52-Day MACD and the 18-Day EMA. MACD Histogram Shows Acceleration of MomentumĪlso included in a MACD chart is the histogram bar graph.
MACD is more of a leading indicator than a moving average cross which tends to lag price movement. When the 24/52 Day MACD lines cross below the 18-Day EMA it indicates negative momentum and lower prices for the stock. When the 24/52 Day MACD line crosses above the 18-Day EMA line it indicates positive momentum and higher prices for the stock. The 18-Day EMA line functions as a buy/sell ‘trigger’. The MACD is calculated by subtracting a stock’s longer-term 52-Day Exponential Moving Average (EMA) from its shorter-term 24-Day EMA. MACD uses moving averages to create a momentum indicator by subtracting the longer-term moving average from the shorter-term moving average. The Moving Average Convergence/ Divergence chart is shown below the daily price chart. The GOOG daily price chart below shows that GOOG is in a price uptrend as the 24/52 day MACD line (black line) is above the 18-Day EMA (purple line).
The Google Cloud segment offers infrastructure, cybersecurity, data, analytics, AI, machine learning, and other services Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet and other services for enterprise customers. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play store Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Services segment provides products and services, including ads, Android, Chrome, hardware, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It operates through Google Services, Google Cloud, and Other Bets segments. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. ( GOOG), states Chuck Hughes of Hughes Optioneering.īefore breaking down GOOG’s MACD chart let’s first review what products and services the company offers.Īlphabet Inc. For today’s trade of the day, we will be looking at a Moving Average Convergence/ Divergence (MACD) chart for Alphabet Inc.
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