Google’s stock, now known as Alphabet (GOOGL), posted a strong performance in 2015. And its fast become one of investors favorite names in the large cap tech space. But after reporting solid earnings on Monday that sent the stock higher in after-hours, GOOGL reversed and headed lower Tuesday and Wednesday.
Why?
Well it’s stock price pattern appears to show that the GOOGL wave 5 price target ($818) was hit in after-hours on Monday. And this might be a reason why the stock has slipped since rocketing higher in after hours on Monday.
This isn’t my first time sharing this price target for Alphabet stock (GOOGL). Back in October, I wrote a post that shared a potential GOOGL wave 5 price target for the completion of the pattern. Here’s an excerpt:
Well, the pattern held true to form, and my Alphabet / Google stock price target of 818 is still in play. The post-earnings surge higher seems to confirm a 5th wave higher. Nice reward for patient traders.
You can read the full post here: Google Beats Earnings: Higher Price Targets In view
In short, the stock hit the target and sold off. The geometry and proportion of this move are excellent and pose a significant amount of resistance for the stock to move higher. Retests towards the target price will likely see a lot of selling.
Alphabet (GOOGL) Monthly Chart – Wave 5 Complete?
Thanks for reading.
Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
