Good morning Traders!
The large size layoffs in the big tech companies continued with both Microsoft and
Google parent company Alphabet announcing their intentions last week.
Alphabet
Alphabet has announced that it will slash it’s workforce by more than 6% by cutting about
12,000 employees worldwide.
Friday’s announcement met with a strong rally on the day, pushing the share price to
close 5.72% higher and just shy of the prominent previous daily swing Lower High, which
is also around the psychological level of the 100 mark. The weekly chart has broken the
downtrend by printing a Higher Low, however to confirm an uptrend the market will need
to break above the previous Weekly Lower High at around the 102.6 mark, and from there
work the monthly level of 105 which is also around the 50% Fibonacci retracement on the
monthly move and may see more sellers coming back into this market around those
areas.
Microsoft
Microsoft will layoff 10,000 employees by the end of March, or nearly 5 per cent of its
workforce, as the company cuts back a pandemic hiring spree.
Here too the Weekly chart broke the downtrend by printing a Higher Low, however,
Microsoft bulls have more ground to cover before reaching the area of the Weekly swing
Lower High at around the 265 mark. And while the Monthly chart is still in a downtrend,
so far for this month, we have a strong bullish rejection candle, though we are only half
way through the month. On the Daily chart the area around the 245 to 250 has been
rejected many times in the past, and may prove resistance once more.
Happy Trading!
