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.
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
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).