Watch these alphabetical price levels as the stock climbs to a five-month high

Shares of Google parent Alphabet (GOOGL) (GOOG) climbed to a five-month high on Tuesday, boosted by optimism surrounding the tech giant’s recently unveiled “game-changing” quantum computer chip called Willow. And investors will be watching closely to see where the stock goes next.

The chip, which Alphabet says could perform calculations in minutes that would take supercomputers 10 septillion years to perform, is part of the company’s roadmap toward a quantum computer with applications in drug discovery, fusion energy, battery design and more, CEO posted Sundar Pichai continued XMonday.

Although the stock came under pressure in the third quarter due to antitrust concerns, the stock has rallied 27% from its low in early September and was trading more than 30% higher year-over-year through Tuesday’s close.

Below we analyze the technical data on Alphabet’s weekly chart and point out key price levels worth paying attention to.

Symmetrical triangle breakout

After peaking in early July, Alphabet stock traded inside a symmetrical triangle before breaking out above the pattern’s upper trendline on Tuesday, indicating a continuation of the stock’s upward trend.

Additionally, the Relative Strength Index (RSI) confirms bullish price momentum with a reading above 60, but is below the overbought threshold, giving stocks room for further upside.

Let’s use technical analysis to provide clues as to how a longer-term continuation move might play out, and also to identify several key support levels to keep an eye on during retracements.

Analysis of bar patterns

To predict where Alphabet stock might go next, investors can use the bar pattern tool, a technique that analyzes past trends to predict future directional moves.

When we apply the tool to Alphabet’s chart, we take the stock’s trend movement from April 2023 to July of this year and reposition it from its recent breakout level. This forecasts a longer-term upside target of around $317, about 70% above Tuesday’s closing price. We chose this previous trend because it started after a breakout from a previous continuation pattern on the chart and tracked the price A similar move to the stock’s current breakout.

Investors can also use the bar pattern tool to speculate how long a stock could continue. For example, the previous trend took place over a 65-week period, meaning a similar trend could play out until around March 2026 if we rely solely on price action.

Key support levels to keep an eye on

The first support level to watch is around $150. A decline into this area could lead investors to look for buying opportunities near a multi-year trend line that connects several prominent prior highs to the September 2024 low.

Selling below this key area could result in a drop to the $122 level, a point on the chart where Alphabet shares could find support from a horizontal line that represents similar trading prices on the chart between April 2021 and October last year connects.

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At the time of writing, the author does not own any of the securities mentioned above.