Alphabet Inc. (Google) (GOOG) EW-Analysis
Google has entered a major correction.
Since 2015, Google has been in a stable bull market, beginning with the formation of light blue Wave 1 followed by light blue Wave 2. From that point onward, the market established a sustainable uptrend and completed the light blue cycle and with that green Wave 1, followed by a bearish corrective phase forming green Wave 2. This green cycle laid the foundation for a long-term uptrend over the following years.
In the subsequent period, the market expanded rapidly into green Wave 3 with a strong impulsive movement, followed by a corrective phase into green Wave 4. After the completion of green Wave 4, the stock entered a massive bullish rally, repeatedly reaching new all-time highs.
However, we now expect that this rally has ended with the completion of green Wave 5, which also finalized yellow Wave 1. This yellow Wave 1 marks the current all-time high at $350.15.
From here, we anticipate that Google will enter a corrective phase to form yellow Wave 2 — the correction of yellow Wave 1. This suggests that the market has already topped and is beginning a short- to mid-term correction as yellow Wave 2 develops.
From a long-term perspective, however, we expect the market to regain strong bullish momentum once yellow Wave 2 is completed. At that point, Google could begin a new impulsive move into a powerful long-term yellow Wave 3, reaching new all-time highs and moving well beyond the current peak.
Based on this long-term outlook, we have identified a Fibonacci retracement zone where we expect the current correction to potentially come to an end. Within this zone, new bullish momentum could re-enter the market after the completion of the broader corrective phase.
This Fibonacci retracement zone ranges from:
- 50% at $187.29
- 61.8% at $148.85
- 78.6% at $94.13
From our perspective, this zone represents prime buying opportunities to either initiate or accumulate positions in this market. Based on our long-term outlook, this area could provide an ideal opportunity to maximize long-term buying positions in the stock.
If any structural changes occur or if our Fibonacci retracement zone gets activated, we will provide an update immediately.
Kind regards,
Monalytics
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