Will ALPHABET INC-CL A Break Out? A Technical Analysis Perspective.

Our stock screener has spotted ALPHABET INC-CL A (NASDAQ:GOOGL) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:GOOGL.

In-Depth Technical Analysis of NASDAQ:GOOGL

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall GOOGL gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, GOOGL is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, GOOGL did better than 84% of all other stocks. On top of that, GOOGL also shows a nice and consistent pattern of rising prices.
• GOOGL is part of the Interactive Media & Services industry. There are 72 other stocks in this industry. GOOGL outperforms 77% of them.
• GOOGL is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month GOOGL has a been trading in the 185.22 - 202.29 range, which is quite wide. It is currently trading near the high of this range.

For an up to date full technical analysis you can check the technical report of GOOGL

Why is NASDAQ:GOOGL a setup?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:GOOGL this score is currently 9:

Besides having an excellent technical rating, GOOGL also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 198.38. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 196.66, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How can NASDAQ:GOOGL be traded?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Disclaimer: This article is not intended to provide trading advice. It is crucial to conduct your own analysis and consider your own observations and trading style when making investment decisions. The article solely presents technical observations and should not be relied upon as a sole basis for trading.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.