GOOGL technicals are bullish; buying call spread targeting $365 based on 200-day MA support.

It is slightly up in today's session. Yes, there is not much instability. It is bouncing off the 200-day moving average support, mainly based on technical factors.

Alphabet is a stock that has been in the limelight and is doing really well. So, I like to take any opportunity to get into technicalities. I am buying a call spread with an expiration date of October 30th. A 355-365 call spread will cost about $3.

Looking at KG, Alphabet's technicals, and Google's charts, it can be seen that it has been on an upward trend throughout the year. These have increased by 10%. But definitely not the best performer on the list.

But looking at the last 52 weeks, it has increased by 40%.

Technically speaking, it is touching the 200-day moving average. This is not just for the past year, but if you go back in time, you will see that buyers have been active several times at this particular moving average, which has acted as an important support area.

Right now the stock is making higher highs and technically higher lows. We are seeing a wedge formation where a lower high is forming for at least this pullback, but we are slowly approaching its top.

You currently have the 50-day, 20-day, and 200-day moving averages all at the same level. And in the next few weeks, even if the price stays at its current position, we will see the 20-day moving average rise above the 50-day moving average, which is a bullish signal.

If you look at the upside levels, even if it touches the upper resistance area, it will be around $365, which is right around Scott's strike price. So, it seems logical. You have some important support areas.

You have the intersection of multiple moving averages and also a wedge pattern of this type. Now, if we breakout, $385 would be your first major resistance area, and then you can think about a high of around $405.

And if there is a breakdown, $300 will be your next major support area. The RSI is making higher highs, which is a positive sign. The MACD is now near the zero line. It is not clear whether this formation is bullish or bearish.

So, I would say that it is a little more bullish than that technical support at the 200-day moving average. The $365 point seems quite logical when it comes to trade setups.

Yes, if you look at the long-term 3-year weekly chart, you will see a primary trend line pointing upwards there as well. This is much like a bull flag pattern where we see a consolidation.

The 50-period moving average or 50-week moving average, which is roughly close to the 200-day moving average, is now at $332. There could be a situation where we try to break above the 20-week moving average at $350 and from there we can go higher.

Higher highs, higher lows. It's structurally pretty solid, at least for now. The MACD is in a slightly bearish position, but it is trying to flatten out. Once the official MACD cross appears on the weekly chart, it serves as a good signal of a three, four or five-week uptrend for such stocks.

We haven't reached that point yet, but Marlow, it looks technically bullish to me.