On September 10, we noted that GOOGL shares:

→ Were forming an ascending channel (highlighted in blue on the chart below, updated with the latest trading data);
→ Could begin to rebound from the psychological support level of $150 (indicated by an arrow).

Since then, the price did indeed turn upward from that level, fluctuating in October between a support level of $160 and a resistance level of $168, signaling a supply-demand equilibrium.

However, this balance now appears to be shifting, as Alphabet Inc. (GOOGL) released its Q3 earnings report post-market yesterday, surpassing expectations:

→ Earnings per share: actual = $2.12, expected = $1.84
→ Gross revenue: actual = $88.27 billion, expected = $86.39 billion.

Investors were likely encouraged by the company’s statement that its AI investments are "paying off." Consequently, Alphabet's shares rose to $180 in after-hours trading, suggesting a likely opening at this level in today's main session.

Today’s technical analysis for GOOGL suggests that trading will likely open with a bullish gap, as:

→ The price breaks above its range, crossing the $168 resistance;
→ It reaches the median of the long-term ascending channel, where a new buyer-seller consensus may form.

If this bullish sentiment persists, GOOGL's price may continue climbing toward its historical high near $190 this year.

According to a TipRanks survey:

→ 22 out of 28 analysts recommend buying GOOGL shares.
→ The average 12-month price target for GOOGL is $201.54.

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.