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.

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.

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).

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


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.

Read More