We've identified ALPHABET INC-CL A (NASDAQ:GOOGL) as a potential breakout candidate based on our stock screener's analysis. This breakout setup pattern suggests that after a strong uptrend, the stock is currently consolidating, potentially signaling a continuation of the trend. Keep an eye on NASDAQ:GOOGL for further developments.
Zooming in on the technicals.
ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.
Overall GOOGL gets a technical rating of 8 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, GOOGL is showing a nice and steady performance.
- The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
- 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. We also observe that the gains produced by GOOGL over the past year are nicely spread over this period.
- GOOGL is part of the Interactive Media & Services industry. There are 68 other stocks in this industry. GOOGL outperforms 73% of them.
- GOOGL is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so GOOGL is lagging the market slightly.
- In the last month GOOGL has a been trading in the 127.90 - 139.42 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
Check the latest full technical report of GOOGL for a complete technical analysis.
Why is NASDAQ:GOOGL a setup?
Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:GOOGL currently has a 9 as setup rating:
Besides having an excellent technical rating, GOOGL also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 137.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 128.78, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for GOOGL in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.
Trading breakout setups.
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.
Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.
More breakout setups can be found in our Breakout screener.
Keep in mind
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.