Alphabet Inc: GOOG Stock Chart Points to $925 Price Target

GOOG StockGOOG Stock: Bullish Setup

Alphabet Inc (NASDAQ:GOOG) stock is probably one among many of the stocks I cover that I love dearly. This passion for Alphabet Inc has nothing to do with its search engine, or its “Android” operating system, and not even its robotics division.

It has everything to do with how I analyze investments, and GOOG stock has made my life pretty simple when it comes to that department. All I need is a simple trend line and my work is done.

I use technical analysis to set up my strategic trading strategies, and this method is solely based on the data I am able to extract from the stock chart. This process has allowed me to successfully discern trends and set up proper investment strategies. I am huge fan of Google stock because it has, by far, one of the cleanest and clearly defined trends that I have ever seen. Trends like this make my life as an analyst pretty sweet.

I am bullish on GOOG stock, and I came to this view by looking at Google stock from multiple time frames. This process ensures that all time frames support one central bias. The following Google stock charts illustrate this process.

The below GOOG stock chart illustrates he long-term trend that is nearing perfection.

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Chart courtesy of StockCharts.com

The line highlighted in blue represents an uptrend. This line is created by connecting the valleys on the price chart. An uptrend is defined by higher lows that are confirmed by higher highs. There is no mistaking an uptrend from a downtrend, as it can easily be identified as the price moves from the lower left to the upper right. This line is a textbook example of bullish price action, and my bullish bias stems on this trend line supporting Google stock.

GOOG stock has had a very predictable pattern in which it trades. Consolidation waves are continuously being backtested before the trend higher resumes. This process is not uncommon, as previous levels or resistance become support and the backtest solidifies the trend.

The following Google stock chart illustrates the medium-term trading range.

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Chart courtesy of StockCharts.com

Google stock has been trading in a range for approximately one year. The price has tested the range on more than one occasion. $685.00 represents support and $810.00 represents resistance. In order for the bullish premise to remain intact, resistance must be taken out. This will pave the way toward higher prices.

The sideways trading range also serves as a guide to the length of the next leg higher. The range within this channel is 125.00 and, as a result, the price objective of a sustained break above $810.00 is $925.00.

The following chart illustrates the short-term trend in GOOG stock.

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Chart courtesy of StockCharts.com

The news surrounding the earnings announcement caused the share price to gap in late July. This gap has been open for over two months now, and this can only be interpreted as a bullish signal. $785.00 is now acting as a level of support. If this level of support is broken, then the gap will most likely get filled and this would be a perfect price point in order to manage short-term price risk.

The uptrend line serves as as short-term bullish support and, for the time being, it has also acted as a level of support that is dynamic and continues to rise.

There are two consolidation waves that set up above the gap, and perhaps the second one will lead to a sustained move above $810.00.

The Bottom Line on Google Stock

I am bullish on GOOG stock because the long-term trend is a masterpiece of perfection. I do not come along trends as defined as this one very often. My bias on Google stock will remain bullish as long as it trades above this magnificent trend line.