If we look at overhead resistance, the strongest for GOOGL is up around 2500 (top line).
You can see there was support at this level in the middle of 2021 and early in 2022 (bottom line). That was a strong support level but now serves as resistance.
And of course, as I mentioned over the last few trading days, there has been a nice move off the prior support level and accurate buy signal. But things are starting to stall out.
We're getting a little bit of sideways movement here and the strong upside momentum is kind of slowing down.
So we may want to see a clearer picture if we intend to buy shares, or maybe it could reverse and we’d potentially start scaling out of the position. This is where it can become useful to go up to a higher time frame.
So let’s go to another chart, and we’re going to talk about implied volatility.
We're going to look at a higher time frame or even two higher time frames and look what implied volatility
is doing in conjunction with the price movement. In most cases…
Implied Volatility rises as the share price falls.