-
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.
Elite CurrenSea Training Program(s) should not be treated as a recommendation or a suggestion to buy or sell any security or the suitability of any investment strategy for Student. The purchase, sale, or advice regarding any security, other financial instrument or system can only be performed by a licensed Industry representative; such as, but not limited to a Broker/Dealer, Introducing Broker, FCM and/or Registered Investment Advisor. Neither Elite CurrenSea nor its representatives are licensed to make such advisements. Electronic active trading (trading) may put your capital at risk, hence all trading decisions are made at your own risk. Furthermore, trading may also involve a high volume & frequency of trading activity. Each trade generates a commission and the total daily commission on such a high volume of trading can be considerable. Trading accounts should be considered speculative in nature with the objective being to generate short-term profits. This activity may result in the loss of more than 100% of an investment, which is the sole responsibility of the client. Any trader should realise the operation of a margin account under various market conditions and review his or her investment objectives, financial resources and risk tolerances to determine whether margin trading is appropriate for them. The increased leverage which margin provides may heighten risk substantially, including the risk of loss in excess of 100% of an investment.
Recommended content
Editors’ Picks
EUR/USD clings to strong daily gains near 1.0400
EUR/USD remains on track to post strong gains despite retreating from the session high it set above 1.0430. The positive shift in risk mood, as reflected by the bullish action seen in Wall Street, forces the US Dollar to stay on the back foot and helps the pair hold its ground.
GBP/USD surges above 1.2500 as risk flows dominate
GBP/USD extends its recovery from the multi-month low it set in the previous week and trades above 1.2500. The improving market sentiment on easing concerns over Trump tariffs fuelling inflation makes it difficult for the US Dollar (USD) to find demand and allows the pair to stretch higher.
Gold price holds firm despite higher US Treasury yields
Gold prices remained flat at the beginning of the week even though the Greenback is getting battered. Higher United States Treasury bond yields kept the non-yielding metal pressured while US President-elect Donald Trump grabbed the headlines amid confusion on his tariff plans.
Ripple's XRP eyes massive rally following spike in key on-chain metric
Ripple's XRP trades near $2.40, up 1% on Monday following a 40% surge in its futures open interest. The surge could help the remittance-based token overcome the key resistance of a bullish pennant pattern.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.