Alphabet Cl A is setting up nicely for a breakout.

Alphabet Cl A (NASDAQ:GOOGL) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:GOOGL.

What is the technical picture of NASDAQ:GOOGL telling us.

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.

Taking everything into account, GOOGL scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, GOOGL has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that GOOGL is one of the better performing stocks in the market, outperforming 85% of all stocks. On top of that, GOOGL also shows a nice and consistent pattern of rising prices.
• GOOGL is one of the better performing stocks in the Interactive Media & Services industry, it outperforms 86% of 74 stocks in the same industry.
• GOOGL is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month GOOGL has a been trading in the 2766.09 - 3019.33 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.

How do we evaluate the setup for NASDAQ:GOOGL?

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:GOOGL this score is currently 8:

Besides having an excellent technical rating, GOOGL also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 2860.63, a stop order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NASDAQ:GOOGL

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

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.

Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.