Google Shallow Corrective Pattern Indicates More Uptrend Soon

The GOOG stock (Alphabet/Google) has been in a very strong bullish trend. The uptrend is valid since price action made a deep dip in March 2020 because of the COVID 19 pandemic.

Currently, the price action is showing another pause. Is the chart ready for a reversal or will the uptrend persist?

Price Charts and Technical Analysis

(Click on image to enlarge)

The GOOG stock is building a consolidation zone at the 21 ema support zone. 

The 21 EMAs have been strong support ever since price action made a dip one year ago – with the exception of the pullback during September 2020. Let’s review:

  • The consolidation zone is probably a wave 4 correction (orange).
  • Waves 4 usually respect shallow Fibonacci levels like the 23.6%, 38.2%, or max 50% Fib.
  • A bullish breakout (green arrows) indicates an immediate uptrend continuation within wave 5 (grey) within wave 3 (pink).
  • The next target is located at the round level of $2,250.
  • A bearish breakout (orange arrow) indicates a deeper pullback. The main target is the 38.2% Fib.
  • The 38.2% or 50% is likely to act as support and send price action up again (blue arrow) within the larger uptrend.
  • Only a break below the 61.8% Fib places the uptrend on hold (yellow circle).
  • Whereas a very deep pullback invalidates the current uptrend (red circle).

On the 4 hour chart, there are two wave variants added. 

One shows a wave 1-5 (orange) completed at the recent high within wave 5 (grey) in wave 3 (pink). The other scenario is that price is now in a wave 4’ (orange) pullback. 

In any case, price action is expected to either make a bullish breakout (green arrows) or build a pullback towards the Fibonacci levels (orange arrow) and bounce (blue arrow).

(Click on image to enlarge)

 

Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.