Alphabet is Spelling a Move Higher

• Posted by Greg Harmon
• on June 1st, 2016

Alphabet, $GOOGL, the stock formerly known as Google, was one of the celebrated FANG stocks in late 2015. Leading the market along with Apple, Netflix and Facebook, it headed higher into the end of the year. It started 2016 lower, like the rest of the market, but had a quick rebound. That was short lived though as it took all of 3 days to erase a 145 move higher.

Since the February bottom it did improve, but lost its status as a market leader. The FANG broke apart. That may be about to change though. The chart below shows why. The first thing to note is the price back at the gap down level. It is consolidating there the past two days, but at a higher high after a higher low.

A gap fill above would be a nice 25 point gain. And the Bat harmonic looks for that move plus a little more to 780. Momentum is on its side too. The RSI is on the cusp of a move into the bullish zone, and the MACD is moving higher. Finally the Bollinger Bands庐 are turned to the upside. Look for a move over 750 as the trigger.

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