Alphabet Inc. (GOOGL) Shares Rise to $180 Following Earnings Report
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.