In this Elliott Wave update, we look at the latest structure in Alphabet Inc. ($GOOGL). The stock continues to show an incomplete 5 wave impulse from the 3/30 low, which suggests that the current pullback should remain corrective before the next leg higher resumes. As a result, the Blue Box Area is standing out as the next buying opportunity, with wave (4) expected to finish there in 3 swings before wave (5) pushes higher.
5 Wave Impulse + ABC correction
$GOOGL Showing Incomplete 5 Wave Impulse From 3/30 Low
Looking at the 1-hour chart, $GOOGL started a clear impulsive rally from the 3/30 low. Since then, the stock has advanced in a bullish sequence, forming higher highs and higher lows in a structure that still looks incomplete.
More importantly, the rally appears to be unfolding as a 5 wave impulse. Waves 1, 2, and 3 appear to be in place, and the market is now correcting that advance in wave 4. Therefore, the current dip is viewed as a pullback within an ongoing bullish sequence rather than the start of a larger bearish turn.
Wave 4 Pullback Developing in 3 Swings
At this stage, the pullback from the recent high looks corrective and is unfolding in 3 swings as an A-B-C structure. This matters because fourth waves often retrace in a corrective pattern before the trend resumes in wave 5.
Consequently, sellers have been able to push price lower in the short term, but the structure still favors a buying opportunity rather than a bearish continuation. As long as the sequence from the 3/30 low remains valid, the preferred view continues to call for another push higher.
Blue Box Area Offering Buying Opportunity
Most importantly, the Blue Box Area between 390.61 and 383.65 marks the next high-frequency support zone. This is where wave 4 is expected to end and where buyers can look to re-enter in the direction of the main trend.
Typically, Blue Box Areas represent extreme zones where corrective pullbacks tend to finish. In this case, if $GOOGL reaches that support region, buyers can appear and trigger the next advance in wave 5.
Therefore, we favor the long side from the Blue Box as long as price action confirms support in that area.
Wave 5 Expected Before Larger Correction
Once wave 4 finishes, $GOOGL should resume higher in wave 5 to complete the entire 5 wave impulse from the 3/30 low. That would mark the end of the current bullish cycle from that low.
After wave 5 completes, traders should then be aware that a larger correction can take place against the 3/30 low. In other words, the market still has room to extend higher first, but once the 5-wave structure finishes, the stock can enter a broader corrective phase.
For that reason, the current setup remains bullish in the short term, while the next larger correction should only be expected after wave 5 ends.
Near-Term Outlook for $GOOGL
In the near term, the focus remains on the wave 4 pullback into the Blue Box Area. If buyers respond there as expected, $GOOGL can resume the rally and extend to new short-term highs in wave 5.
Meanwhile, the broader bullish sequence remains valid as long as the stock stays above the 331.10 invalidation level. Accordingly, dips into support should continue to attract buyers while the right side remains higher.
Technical Summary
To summarize, $GOOGL is showing an incomplete 5 wave impulse from the 3/30 low. The current decline is viewed as a wave 4 pullback unfolding in 3 swings, and the Blue Box Area at 390.61–383.65 is the next key buying zone.
From there, buyers can appear and drive the stock higher in wave 5 to complete the 5-wave impulse. After that, a larger correction against the 3/30 low can take place.
