April had a chaotic start as US President Donald Trump hinted at an exit from the ongoing Iran war. The market rallied with the hint, and Google’s Alphabet stock went from $271 to $294 in three trading sessions. Just when the markets breathed a sigh of relief, and Dow Jones surged more than 200 points, Trump went on an offensive the next day displaying aggression against Iran. We will send them to the “Stone Ages, where they belong,” he said.

The challenge now is how to navigate and successfully manage uncertainties. Institutional clients have repeatedly managed it well by reading the room much differently. Retail investors must also follow suit to survive in this merciless market. In this article, I will help retail investors on how to approach Google stock this week.

Google Stock: 3 Things To Watch Out For Before Trading This Week

1. CPI Data

Now, while everyone is talking about Trump, the real boss of the market this week is the US Consumer Price Index (CPI) data. The report will be out on April 10, which can change the direction of the markets. Inflation does more damage to tech stocks than global wars. Google’s Alphabet, along with the broader stock market, is now facing a new challenge. If Friday’s CPI comes higher than 2.4%, GOOG’s $290 support level will be tested again.

2. Brent Crude Above $108

Brent crude oil prices climbed above $109, threatening the stock market. The US has also not ruled out the possibility of oil prices reaching $200 per barrel. High oil prices act like a tax on their own, which the global economy has to pay. If oil breaks above the $110 this week, Google stock might decouple from the recovery. Even if oil prices hover above the $105 range, GOOG could trade sideways and stagnate.

3. The Countdown to the Earnings Call Begins (GOOG)

The April 6-10 week for Google stock could be a quiet week before the massive April 23rd Q1 Earnings hype begins. Historically, smart money starts accumulating GOOG 14 days before the earnings call is scheduled. Since GOOG is at the 200-day SMA at $265, investors must watch out for the rise in volume. If you see rising volume on ‘red days’, it’s a sign that institutions are absorbing the retail panic. This is exactly the ‘reading the room’ which the article spoke about earlier. So the exact date you need to closely monitor the volume is April 9.

Final Analysis For the Week

Our analysis for Google stock this week is to buy when you see a surge in volume when the markets are in the red. Carefully approach all the 3 data points that are mentioned, which is the CPI report, oil prices, and earnings call. These three developments could dictate the next direction of Google’s Alphabet stock in April.