Alphabet Inc (US: GOOGL) Despite a stop-out on 10th January 2022 based on our report dated 3rd December 2021, technicals indicate that the bullish upside is set to return:

  1. The brief break below support zone 1 is considered a bear trap after the bullish engulfing candle was seen closing within the boundary of support zone 1.
  2. The bullish engulfing candle was also seen supported by the 78.6% Fibonacci retracement level of US$2623.54-US$3021.87.
  3. RSI is showing oversold signal.
  4. However, Ichimoku is still showing a downtrend and hence upside must clear above US$2810.00 resistance to confirm the upside.

*Expected timeline of the trade is 20 weeks from the date of report issuance.

CHART LEGEND

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line