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Chris Svorcik

The Alphabet Inc (Goog) is building a bearish retracement within a strong uptrend. Our article reviews the key bull and bear lines.

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This will determine whether a deeper pullback against the trend will take place. Or will the bulls manage to continue higher in the trend.

Price Charts and Technical Analysis

The GOOG stock is showing a head and shoulders reversal chart pattern (red boxes). The support line (green) is the main decision zone for a potential reversal.

  • A bearish breakout (orange arrows) confirms the deeper bearish retracement towards the long-term moving averages and Fibonacci levels.
  • It also confirms the deeper wave 4 (pink) development rather than the shallower wave 4 (grey).
  • An immediate breakout (green arrows) above the resistance (orange) indicates a potential uptrend continuation.
  • The Fibs are expected to act as a bouncing spot (blue arrows).
  • Only a deeper retracement places the uptrend in question (yellow & red circles).

On the 4 hour chart, the sideways price action is an ABC (orange) pattern. The main question is whether the ABC pattern is complete OR will price action expand it.

  • The end of the ABC is confirmed by a bullish breakout.
  • The continuation of the ABC pattern can take place with 2 variants:
    • ABCDE triangle chart pattern
    • Deeper ABC retracement after bearish breakout

In all cases, an uptrend is expected eventually. Unless price pushes below the $1,500 round level.

Good trading,

Chris Svorcik

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The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter


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