GOOGL corrective bounce could lead to another leg lower [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Google (GOOGL) continues to trade within a corrective Elliott Wave structure after completing wave (C) of (W) near 312. The stock has since turned higher and appears to be developing a corrective recovery. The current structure suggests that GOOGL may continue higher in wave (A), with wave 5 still expected to complete the first leg of the bounce. After that, we expect a pullback in wave (B), which should unfold in at least three swings. Once wave (B) completes, GOOGL could turn higher again in wave (C) and complete the larger ((X)) correction.

The projected path suggests that the wave (C) recovery could reach the 345–353 price range which represents the 38.2%-61.8% fib. retracement of wave ((W)) before the stock turns lower again. This would complete the corrective structure and potentially set the stage for another decline.

The broader trend remains bearish while GOOGL trades below the 379.47 invalidation level. Therefore, we do not recommend chasing the upside, as the current recovery appears corrective rather than the start of a sustained bullish trend.

In the near term, traders should monitor the development of wave (A) and the subsequent wave (B) pullback. As long as the price remains below 379.47, the bearish Elliott Wave scenario remains valid, with the potential for another move lower after the larger correction completes.

GOOGL 30-minute Elliott Wave counts

Video analysis

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Elliott Wave Forecast Team

ElliottWave-Forecast.com

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