GOOGL, Moving In Steady Trend, Potential To Continue Further!Hello Traders Investors And Community And welcome to this analysis where we will look at recent events, the current price-structure and what we can expect the next time from GOOGL. As we saw the major lows this year after the corona-crisis-breakdown we had a price-recovery in GOOGL to the point at which we are now. Regarding the digitalization boom, we currently experiencing worldwide we can come to the conclusion that GOOGL is the major data-kraken in the world collecting data from users worldwide and therefore a leading organizational pillar in the new artificial intelligence technology which relies on big data to function and counter possibilities this is giving GOOGL fundamental ground to sustain further even in the current crisis and the high digitalized technological world we live in. On the technical side, I found some interesting signs which can determine the further outcome of GOOGL and lead to some decent opportunities therefore we are looking at the 4-hour locals timeframe.
As you can see in my chart GOOGL is moving in a steady trend within this rising-channel that is marked in blue within my chart, currently it is approaching a huge gap which will be closed at the 1480 level that you can see marked in green and black in the chart. As you can examine also GOOGL confirmed above the EMA-structure we have here and is a leading part of the uptrend in which it is trading, therefore when we break it to the downside this will cause bearish pressure as this signal validated already positively in the past of GOOGls history. As for now there are two possible options for the stock to continue further, once it is that we get a bullish move as soon as we will the gap which can be possible after such gap and the second will be that we confirm the 1480 level after the gap filled as resistance, both scenarios are tradable and after the proper scenario has confirmed rightly we can enter the market.
Now counting everything together we have a higher potential to continue bullish as there are important support levels in the range and we are moving within a steady uptrend that bullish scenario will be fulfilled when the stock confirms above the 1480 level and continues to rise, after that level we will approach the current all-time-high level which will be a huge test for the stock. When considering the bearish side which isn't more likely at the moment it is possible that the stock falls below the lower boundary of the channel which will cause bearish pressure to the downside when we close also below the EMA structure in the chart a new downtrend and therefore logical reversal has been formed the next important support, in this case, will be at the 1310 level, either case can be traded rightly after the confirmation has emerged.
Comparing the stock within the real-economy we have definitely a fundamental growth potential because there is an increase in digitalization as more and more people rely on online-infrastructure in the current crisis in which the stock plays a big role, this trend can go further when we do not get any important signs which will invalidate this growth. What we need to keep in mind is that this can possibly change as we get second lockdown restrictions in many countries and therefore a second corona-fear on the market which will hit the global economy similar to the first phase with all majors stocks and indices going down as this can be just a whole bull-trap, in this case, we need to look forward to be prepared when this happens and just don't rush into trades or buy anything because there are still rumors according in the corona-crisis which can hit the markets.
In this manner, thank you for watching, support for more market insight have a great day and all the best!
Information provided is only educational and should not be used to take action in the markets.
