Google (GOOGL) turned sharply lower after we identified a five-wave reversal from the upper channel, which appears to have marked the completion of a larger wave five impulsive sequence. The stock now looks to be entering a broader corrective phase, with the potential for significantly more weakness if key trend line support around the $300 level breaks.
At the moment, the decline could be forming an irregular ABC flat correction, with wave B potentially nearing completion. If this interpretation is correct, a new wave C decline could soon take over and push the stock lower.
The $300 area remains the key support level to watch. A decisive break below it could open the door for a deeper decline toward the previous fourth-wave area around $271. On the upside, the $376 level remains important resistance and would need to hold to keep the broader bearish corrective outlook intact.
Highlights:
- Five-wave top appears confirmed from the upper channel.
- A larger corrective decline now appears to be underway.
- The trend line around $300 is the key support to watch.
- A break below $300 could expose the $271 area.
- Wave B may be completing, which could lead to a new wave C decline.
- $376 remains important resistance.
Become a premium member
Get daily Elliott Wave updates for US Single Stocks, SP500,DAX, GOLD, SILVER, CRUDE, FX, CRYPTO, etc. or apply for unlimited access to the Elliot Wave educational videos.