Alphabet, Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) was trading about 0.85% higher Friday, lifted by Nvidia Corporation, which surged following its first-quarter earnings print and was holding near the $385 level.
Alphabet also rallied shortly after its last earnings report, skyrocketing over 21% between May 5 and May 22, with the stock topping out at $127.05 before beginning to consolidate. The surge higher, paired with the consolidation, has settled Alphabet into a bull flag pattern on the daily chart.
The bull flag pattern is created with a sharp rise higher forming the pole, which is then followed by a consolidation pattern that brings the stock lower between a channel with parallel lines or into a tightening triangle pattern.
Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.
The Alphabet (GOOG) Chart: Alphabet’s bull flag was formed between May 5 and Friday, with the pole created over the first 12 days of that timeframe and the flag formed over the trading days that followed. The measured move on a break from the flag, which would need to happen on higher-than-average volume, suggests the stock could rally up toward $150.
- The recent consolidation has helped to drop Alphabet’s relative strength index down from 80% to about 72%. Although still in overbought territory above 70%, the stock could rally higher on continued bullish momentum on a break from the flag.
- Bearish traders want to see Alphabet drop under the eight-day exponential moving average, which would negate the bear flag and the stock’s current uptrend. If that happens, momentum to the downside could occur.
- Alphabet has resistance above at $126.41 and $131.40 and support below at $122.10 and $117.23.
See Also: Job Apocalypse Or Reskilling Revolution? LinkedIn Co-Founder Exposes AI’s Duality
