Alphabet quietly hits new highs in down market, forming bullish ‘cup-and-handle’ chart pattern | Wilnesh News
Mega-cap Alphabet (GOOGL) is one of the best-performing stocks in the S&P 500, hitting an all-time high on Monday. This strength makes sense on the charts, as it pushed the stock above long-term resistance near $151, which dates back to 2021. Assuming the breakout is decisive by the end of the week, we view this as a bullish long-term development for Google. The breakout acted as a positive catalyst, with a price target of $184 based on cautious moves. The rally marks an extension of the cyclical uptrend and gives the chart a bullish “cup-and-handle” pattern. Cup-and-handle breakouts often lead to upside follow-through, as we saw from Microsoft (MSFT), which completed a similar pattern last November. GOOGL’s medium-term momentum is restored based on a new bullish crossover on the weekly MACD. This should allow overbought conditions to be well absorbed. GOOGL’s cyclical uptrend is supported by longer-term trend-following indicators, such as the weekly cloud model (shaded area on the chart). Support for the stock can be gauged by the rising 200-day (and 40-week) moving average, which captured the recent correction lows. —Katie Stockton and Will Tamplin Get free access to Fairlead Strategies research here. Disclosure: (None) The above is subject to our Terms and Conditions and Privacy Policy. This content is for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not apply to your particular situation. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. Click here to view the complete disclaimer. 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