Google (GOOG Stock) shallow corrective pattern indicates more uptrend soon
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER-
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 Covid.
-
The 21 emas have been a strong support ever since price action made a dip one year ago - with the exception of the pullback during September 2020.
-
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).
Currently price action is showing another pauze. Is the chart ready for a reversal or will the uptrend persist?
Price charts and technical analysis
The GOOG stock is building a consolidation zone at the 21 ema support zone.
The 21 emas have been a 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 the 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).
The analysis has been done with the ecs.SWAT method and ebook.
-
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 Covid.
-
The 21 emas have been a strong support ever since price action made a dip one year ago - with the exception of the pullback during September 2020.
-
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).
Currently price action is showing another pauze. Is the chart ready for a reversal or will the uptrend persist?
Price charts and technical analysis
The GOOG stock is building a consolidation zone at the 21 ema support zone.
The 21 emas have been a 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 the 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).
The analysis has been done with the ecs.SWAT method and ebook.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.