The Alphabet Stock (GOOG) has had a tremendous bull run for more than 1.5 years. The price has doubled in the last 1 year – since September 2020.

Image Source: Pixabay

Today’s Elliott Wave and price analysis reviews why a bearish correction is needed. But also why an uptrend is expected to continue after the pullback.

Price Charts and Technical Analysis

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The GOOG stock price has reached the distant -1.618% Fibonacci target of the wave 1-2 (purple). This is a spot where the wave 3 (purple) could be completed:

• An uptrend is clearly visible when viewing the long-term moving averages.
• But a divergence pattern has also appeared (purple line).
• Also the resistance of the strong -1.618% Fibonacci target could start a pullback.
• The confirmation of a retracement is a break (orange arrows) below the 21 ema zone. 
• A head and shoulders reversal chart pattern could take place (red boxes)
• The main target of the pullback is the support zone (blue box).
• An uptrend continuation (green arrows) is expected after price action completes wave 4 (purple) and starts wave 5 (purple).

On the 4 hour chart, price action is close to challenging the support trend line (green):

• A bearish breakout could first aim at the 23.6% Fibonacci level (orange arrows).
• A bullish bounce could finish wave A (pink) and create a wave B (pink).
• Another bearish leg (orange arrow) could complete wave C (pink) within wave 4 (purple).
• A bullish bounce could occur at the 38.2% Fibonacci level (blue arrow).

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