In my March 17 review of shares of Alphabet (GOOGL) I wrote that "The charts of GOOGL have improved but prices have not broken above their early February highs and the OBV line has not responded strongly. Traders with patience could begin to probe the long side of GOOGL risking to $88."
Well, the shares have continued to strengthen and are now poised to break out over their February highs.
Let's check it out.
In the daily bar chart of GOOGL, below, I can see that the shares have pushed higher from our mid-March review. Prices are above the rising 50-day moving average line and above the bottoming 200-day line.
The trading volume looks like it has been more active since November. The On-Balance-Volume (OBV) line has turned upwards from late February. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of GOOGL, below, I can see a stronger chart than the one I looked at one month ago. The shares are trading above the bottoming 40-week moving average line.
The weekly trading volume histogram has been active the past three months. The weekly OBV line continues to improve and is very close to crossing above the zero line for an outright buy signal.
In this daily Point and Figure chart of GOOGL, below, I can see that a trade at $110 will be a new high for the move up and a breakout on this kind of chart. A price target of $138 is shown.
In this weekly Point and Figure chart of GOOGL, below, an upside price target of $154 is being projected.
Bottom-line strategy: Traders who went long GOOGL based on our March 17 recommendation should continue to hold those longs. Traders could add to long or initial new longs on strength above $110. Risk to $97 now. The $138 area is our price target now with $154 a secondary target.
