Will GOOGL Bounce or Break? Key Levels to Watch Tomorrow! Nov. 41. Trend and Price Action:
GOOGL has recently pulled back from a strong upward push, now forming a consolidation zone after a significant rise. This consolidation phase suggests indecision as the stock attempts to stabilize.
Price action shows support at the current levels, but the stock remains below its recent peak, indicating potential resistance overhead.
2. Support and Resistance Levels:
Immediate Resistance: Around $176.62, which aligns with previous highs and the EMA. Breaking above this level with volume could indicate a bullish continuation.
Major Resistance: Near $182.02 - $181.95, the recent high before the pullback. This is a strong area to watch if GOOGL attempts a rebound.
Immediate Support: Around $168.86, a level that has provided recent support during the current consolidation.
Additional Support: $164.00 and $161.01, which may act as strong support zones if the price continues to decline.
3. Volume Analysis:
Volume has decreased during the consolidation phase, indicating that the initial selling pressure may be subsiding. An increase in volume at either the support or resistance level could signal the next directional move.
4. MACD Indicator:
The MACD is showing a bearish signal, with the MACD line below the signal line. If momentum continues to weaken, GOOGL could test lower support levels. However, a crossover could indicate a potential reversal.
5. Price Action Setup:
Bullish Scenario: If GOOGL breaks above $176.62 with strong volume, it could retest the $181.95 - $182.02 area. A close above this would be a bullish signal.
Bearish Scenario: If the stock fails to hold the $168.86 support, a test of $164.00 or even $161.01 could be possible, strengthening the bearish outlook.
My Thoughts:
Current Bias: Neutral with a slight bearish lean unless GOOGL breaks above the immediate resistance.
Suggested Approach: Wait for confirmation of direction around the key support and resistance zones and consider setting stops to manage risk.
Disclaimer:
This analysis is for informational purposes only and does not constitute financial advice. Trading stocks carries risk. Always conduct your own research or consult a financial advisor.
