Google

High Time Frame Analysis of Google (Alphabet Inc.)

After reaching a local top around $195 on July 8th, Google (Alphabet Inc.) has entered into a downtrend. This correction follows a strong bullish phase and is currently interacting with key support levels, which could determine the next major move.

Key Observations:

1. Current Downtrend:
   • Top at $195: The recent high marked the end of a significant upward phase, and since then, Google has been correcting lower. This correction is part of a natural market cycle after a substantial rally, allowing the market to consolidate before potentially resuming its upward trajectory.
2. Fibonacci Retracement Levels:
   • The chart highlights the key Fibonacci levels that have been reached during this correction:
     • 0.618 retracement at $163.41
     • 0.5 retracement at $155.25
     • 0.382 retracement at $147.39
   These levels are critical as they often serve as strong support during corrective waves. The price is currently reacting to these levels, which may indicate that the correction is finding a bottom.
3. Next Steps – Monitoring Wave Structures:
   • Five-Wave Structure: For the correction to be considered complete, we would typically expect to see a five-wave movement to the downside. This structure has not yet fully developed, indicating that there may be more downside before the correction is over.
   • Three-Wave Reversal: Following the five-wave decline, a three-wave corrective move upward is expected. This would confirm that the downtrend is a corrective phase within a larger bullish structure and would set the stage for a potential resumption of the uptrend.
4. Outlook – Higher Prices Expected:
   • Despite the current downtrend, the broader market structure remains bullish. The current correction is seen as a necessary phase to build a base for the next leg up. Once the correction completes, we expect Google to resume its upward trajectory, potentially targeting new highs as the market enters Wave 5 of the broader Elliott Wave cycle.

Conclusion:

Google is currently in a corrective phase after reaching a local top at $195. The price has reached key Fibonacci levels, which are providing support. However, before the correction is deemed complete, we need to see a clear five-wave decline followed by a three-wave upward correction. This structure will likely set the stage for higher prices in the future. Patience is required as the market completes this corrective phase, but the outlook remains bullish in the long term.