![](https://cdn.steemitimages.com/DQmdK5Hd5oSUXse6XX8d2cyLy7RdVuvgPRoEH7hvVCYqTWD/image.png)

From 6th September until late last week, Alphabet (Google) was trading below significant support created initially off the late January high that printed just before the whole market took a nosedive. Overcoming this level was clearly a key positive and likewise, moving back below that zone was cause for concern.

However, as the NASDAQ managed to move out of its own pennant consolidation (see here for my bullish take on NDX https://steemit.com/trading/@technicaltrader/nasdaq-analysis-pennant-breakout-further-gains-expected), Google also managed to break out of a pennant to the upside and that pennant looks to have formed the low for this current move. It's important to note that RSI failed to hit oversold levels in the recent downward move, suggesting it was simply a normal correction.

This suggests to me that over the upcoming months, GOOGL is likely to move to new highs. Looking at the weekly chart, its clear that price has been rising in a clearly defined channel off the 2015 lows. As long as price can remain within this channel and above the 4.236 Fibonacci extension of the 2007 highs to 2008 lows at 1,183, the target is the next Fib level at 1,838.  53% upside from current levels.

![](https://cdn.steemitimages.com/DQmPYAvkUgFLsiNHbdV2dgdpS8di7BaGnXvTF44fENwZMTV/image.png)