Don't Ignore This Chart!

Alphabet Turns up with Increase in Volume


Alphabet, which some of you may know as Google, surged off a support zone with good volume and broke short-term resistance. This breakout could evolve into more because the big picture is also bullish. GOOGL advanced to a new high in May and then consolidated with a long consolidation. The blue trend lines converge slightly so we could call it a symmetrical triangle. Regardless, a consolidation after a 52-week high is typically a bullish continuation pattern and a breakout at 1000 would signal a continuation of the bigger uptrend. Short-term, the breakout in the 950-960 area is holding as broken resistance turns into support. A close back below 950 would negate this breakout and call for a re-evaluation. 

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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