Google Vs. Apple: A Look At The Charts

Another couple of strong months for Google-parent Alphabet Inc GOOGL GOOG and weak months for Apple Inc. AAPL and the world could soon be crowning a new king of the public market.

As the world debates whether Google can surpass Apple as the world’s largest company by market cap, a technical look at the stocks’ charts show that both names have bullish long-term outlooks.

First, Apple has taken a lot of heat from technical analysts of late because of the broad head and shoulders that have been forming since late 2014. However, a look at the stock’s five-year chart shows that Apple’s recent downturn has not yet even reached the magnitude of its 2012/2013 downturn.

If the past is any indication, once Apple finishes this cyclical downturn, which could drag the stock as far down as the $70s, it will once again find its stride on the way to new all-time highs.

Related Link: Chipotle's Bounce Happened At A Bullish Technical Level

Google’s stock is much more bullish in the near term, although a breakout above $800 would be extremely encouraging. Google has a history of trading within $100 trading ranges before breaking out higher, and its recent push to $800 may be an indication that it will consolidate between $700 and $800 for a while before logging its next leg up.

It’s too early to tell whether this consolidation period will be as short as three months, like the $600–700 range last year, or as long as the nearly two-year consolidation the stock experienced between $500 and $600 from late 2013 until mid-2015. However, unless Google breaks down below $700, there is no major technical indication that the stock won’t be headed higher again at some point.

Disclosure: the author holds no position in the stocks mentioned.