Dear traders,
the 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 the Covid 19 pandemic.
Currently price action is showing another pause. Is the chart ready for a reversal or will the uptrend persist?
The GOOG stock is building a consolidation zone at the 21 ema support zone.Β
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. Letβs review:
On the 4 hour chart, there are two wave variants added.Β
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 4β (orange) pullback.Β
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 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.
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