Analyst Sees $320 Resistance, Expects 3.75% Slide to $300 With March 315 Puts
Prosper Trading Academy strategist Charles Moon expects Alphabet shares to face resistance near $320 and forecasts a 3.75% decline to about $300, recommending March 2nd 315 put options at $5.25 or lower with a 50% profit target. He cites high capex and geopolitical risks fueling a bearish tech outlook.
1. Bearish Technical Outlook
Prosper Trading Academy strategist Charles Moon projects that Alphabet's recent advance is blocked by resistance near $320, arguing that technical barriers will outweigh support levels and signal a reversal from the traditional buy-the-dip mentality.
2. Options Strategy Execution
Moon recommends capitalizing on the anticipated reversal with a short-dated March 2 315 put option position, suggesting an entry price of $5.25 or lower and targeting a 50% gain if shares slide toward his forecasted floor.
3. Price Levels and Performance
Alphabet shares closed at $311.69, trading 49% higher over six months and 72% higher over the past year, but Moon warns that a breakdown below $310 could trigger a 3.75% decline toward a $300 psychological support level.
4. Macro Negative Drivers
He cites elevated tech capital expenditures, geopolitical tensions and a 21.01 VIX as key factors creating a bearish backdrop for the sector, which may exacerbate Alphabet's downside in the near term.