The stock of Google parent Alphabet (NASDAQ: GOOGL) has been grinding higher since January 24th, when it hit support at 2490, and this is marked by an upside support line drawn from the low of that day. Yesterday, the stock climbed near the 2760 zone, marked by the high of January 19th, while after the closing bell, the company reported better-than-expected earnings and revenue for Q4. In our view, this suggests that the stock could open with a positive gap today, and perhaps continue higher in the short run.
A clear and decisive break above 2760 could encourage advances towards the 2860 territory, which is marked near the peak of January 13th. If market participants are not willing to liquidate their positions near that territory and decide to break higher, then we may see them pushing towards the high of January 4th, at 2930.
Turning our gaze to our short-term oscillators, we see that the RSI emerged above 50, and now looks to be heading towards the 70 line, while the MACD lies above both zero and trigger lines, pointing up as well. Both indicators detect upside speed, which adds to the chances of further advances by this stock.
Now, in order to abandon the upside scenario, we would like to see a clear dip below the 2660 barrier. This could confirm the break below the aforementioned upside line and may pave the way towards the 2570 zone, marked by the low of January 28th. If there are no buyers to be found near that zone either, its break may lead the stock towards the low of January 24th, at 2490.
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