Google Stock Hits -1.618% Fibonacci Target and Expects Pullback

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:

1. An uptrend is clearly visible when viewing the long-term moving averages.
2. But a divergence pattern has also appeared (purple line).
3. Also the resistance of the strong -1.618% Fibonacci target could start a pullback.
4. The confirmation of a retracement is a break (orange arrows) below the 21 ema zone.
5. A head and shoulders reversal chart pattern could take place (red boxes)
6. The main target of the pullback is the support zone (blue box).
7. 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):

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

Good trading,

Chris Svorcik

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