Next stop for rallying Alphabet is the $200 area, according to the charts

Alphabet Inc. (GOOGL) has broken above its 200-day moving average, signaling potential further upside, unlike some other mega-cap tech stocks. Technical analysis indicates a possible inverted head-and-shoulders pattern with a target price near $197, based on the height of the pattern from the April low to the neckline, potentially filling the gap from the February peak; upward trending On Balance Volume and positive Chaikin Money Flow further support this bullish outlook.

Analysis

Alphabet Inc. (GOOGL) is exhibiting robust bullish technical signals, setting it apart from other mega-cap technology and communication stocks that are finding it difficult to sustain positive momentum after recent gains. The stock achieved a significant milestone this week by decisively moving above its 200-day moving average for the first time since February, a move preceded by its surpassing the 50-day moving average earlier in the month. This positive trajectory is supported by the confirmation of a key support level, originating from May 2024, at the April low, with subsequent lows in April and early May reinforcing this base and leading to a short-term pattern of higher highs and higher lows over the last two weeks. The bullish case is further substantiated by an upward-trending On Balance Volume (OBV) indicator in recent weeks, suggesting stronger volume on up days, and a Chaikin Money Flow (CMF) indicator that has remained mostly above the zero level in May, confirming an accumulation phase. A classic inverted head-and-shoulders bottoming pattern has been identified; GOOGL powered above the pattern's neckline last week, completing it and unlocking a minimum upside objective to around $197. This target, derived from the pattern's height (April low to the neckline), would not only place Alphabet back into the gap range from its initial downside move off the February peak but also, as per the source analysis, yields an upside target near the all-time high from February 2025.

Key Decisions for Investors

• Investors should assess the bullish technical indicators for GOOGL, including its break above the 200-day moving average and the completed inverted head-and-shoulders pattern, which points to a potential price appreciation towards the $197 target.
• Continued positive momentum, evidenced by an upward-trending On Balance Volume and the Chaikin Money Flow remaining above zero, should be monitored as confirmation of sustained buying interest necessary for further upside.
• Consider GOOGL's current outperformance relative to peers and its tactical breakout above key resistance; however, ensure that the stock maintains crucial support, such as the 200-day moving average, before increasing or initiating positions.