Alphabet: A Runner in the New Year?Alphabet has mostly lagged among the megacap growth stocks since the summer, but it could be ending the year on a strong note.
The first pattern on today’s chart is the pair of bullish gaps on October 30 and December 10. The Internet giant initially jumped after earnings and revenue beat estimates. It also benefited from strong growth in its cloud services. The next rally resulted from news of its “mind-boggling” Willow quantum-computing chip. (That term was used in a blog post by Google's Quantum AI lead Hartmut Neven.)
Such price moves, accompanied by heavy volume, may reflect improving sentiment.
Next, the second bullish gap pushed GOOGL above its November peak and previous record high from the summer. Is a breakout underway?
Third, MACD is rising and the 8-day exponential moving average (EMA) is above the 21-day EMA. Those may signal positive momentum.
Finally, the 50-day simple moving average (SMA) crossed above the 100-day SMA in November. Both are above the 200-day SMA. That realignment of SMAs, with the faster above the slower, may be consistent with a longer-term uptrend.
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