ALPHABET INC-CL A (NASDAQ:GOOGL) showing some interesting technicals. Here's why.

Our stock screener has identified ALPHABET INC-CL A (NASDAQ:GOOGL) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:GOOGL.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall GOOGL gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, GOOGL is only an average performer.

• The long and short term trends are both positive. This is looking good!
• GOOGL is part of the Interactive Media & Services industry. There are 73 other stocks in this industry. GOOGL outperforms 81% of them.
• GOOGL is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so GOOGL is leading the market.
• In the last month GOOGL has a been trading in the 126.38 - 138.00 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the yearly performance of all stocks, we notice that GOOGL is one of the better performing stocks in the market, outperforming 87% of all stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

Our latest full technical report of GOOGL contains the most current technical analsysis.

How does the Setup look for NASDAQ:GOOGL

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:GOOGL has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, GOOGL also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 135.67. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 129.36, a Stop Loss order could be placed below this zone.

Trading setups like NASDAQ:GOOGL

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.