In the daily bar chart of GOOGL, below, we can see a basing pattern for from October -- prices look like a small inverse head-and-shoulders pattern. A neckline can be drawn across the highs of October, early December and last week. The 50-day moving average line turned flat in January and recently turned upward. Prices are testing the slightly rising 200-day line now and a close above it will be positive.
The daily On-Balance-Volume (OBV) line shows a decline into the middle of January, suggesting that sellers have been more aggressive and that is not the pattern we would like to see here. The trend-following Moving Average Convergence Divergence (MACD) oscillator shows a number of cover shorts buy signals from early November and last month crossed the zero line for an outright go long signal.
In the weekly bar chart of Action Alerts PLUS holding GOOGL, below, we can see a positive slant to the indicators. Prices are testing the rising 40-week moving average line. The weekly OBV line has been steady the past three months. The weekly MACD oscillator crossed last month to a cover shorts buy signal.
In this Point and Figure chart of GOOGL, below, we can see an upside price target of $1,229. A trade at $1,237.63 will be a breakout.
Bottom-line strategy: GOOGL is showing a positive chart pattern ahead of earnings and that could mean that informed investors are anticipating good numbers. Longs should risk a close below $1,060 and look for gains to $1,238 in the weeks ahead.