GOOGL completed a three-wave decline into the 270 area, followed by a rebound over the last two weeks. This move followed an earlier five-wave impulse that set up the correction.
Price has broken out of a downward channel and moved above 317. This is presented as a change in near-term direction, with a possible move towards prior highs near 345.
The level at 270 is described as support, with the outlook remaining positive while price stays above it. A short-term approach of buying pullbacks is suggested under that condition.
A note adds that those who bought in the yellow box may use tighter stops. The text also refers to a live webinar recording streamed on 7 April for further analysis.
Looking back at our analysis from this time in April 2025, the call for a bullish move in GOOGL was correct. The stock successfully held the 270 support level and rallied strongly past our 345 target later that year. This confirmed our view that buying on dips following that three-wave corrective pattern was the right strategy.
Now, on April 9, 2026, the situation is more complex as GOOGL trades near $380 after pulling back from all-time highs of $410 set in February. While the long-term trend remains up, recent government reports showing stubbornly high Core PCE inflation at 2.9% have created short-term uncertainty across the market. This hesitation is visible as the stock struggles to find direction ahead of its earnings report later this month.
Implied volatility for GOOGL options has risen over 15% in the last two weeks, making outright call or put buying expensive. With this elevated premium, traders should consider strategies that sell volatility, such as an iron condor, to capitalize on a potential range-bound movement between the key $370 support and $400 resistance levels. This strategy profits from the stock staying within a defined range as volatility crush occurs after the earnings announcement.
For those with a more directional bias, put credit spreads offer a bullish position with a higher probability of success than buying calls. One could sell a put spread with the short strike below the critical $370 support level, collecting a premium while defining their risk. Historically, GOOGL has often found support at its 50-day moving average, which currently sits near $372, making this a statistically significant level to watch.
Alternatively, traders who are cautious due to increased competition in the AI space could use a call credit spread. This bearish strategy involves selling a call option above the recent highs near $410 to bet against a significant breakout in the coming weeks. This provides a way to generate income while maintaining a defined-risk position should the stock rally unexpectedly.
