Shares of Google parent Alphabet Inc. (GOOG) started 2017 off strong, but for the past six months, they have been stuck in a trading range between $900 and $1,000.

In the past month, the shares have climbed up to the zone of $960 to $1,000 from the area of $900 to $930, reaching new highs in the process. However, traders do not appear to be too enthusiastic about this rally, as gains have been achieved on consistently lower volumes. On the other hand, a higher low near $960 and the relative strength index (RSI) indicator holding the 50 level indicate that underlying accumulation continues and that the current upswing remains intact. (See also: Google, Cisco Ink Cloud Deal to Take on AWS, MSFT.)

 

 

Whether the shares are able to break through the $1,000 round number barrier in the near term may depend heavily on today's earnings report. According to Bloomberg.com, the Street is expecting Alphabet to report earnings per share around $8.34. Positive results and guidance could propel the shares higher, with the next measured resistance possible near $1,040 or $1,100, while a weak report could send the shares sliding, with initial support possible near $960 or $900. (For more, see: FANG Stocks Face Same Dark Fate as Microsoft, IBM, AT&T.)

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