Alphabet (GOOG - Get Report) (GOOGL - Get Report) CEO Larry Page is in the headlines Tuesday, getting attention after news hit that a startup he funded, Kitty Hawk, has unveiled an electric, pilotless flying taxi called Cora.
The company is currently testing its prototype in New Zealand, where regulators are more copacetic to Kitty Hawk's unique machine.
Investors who think that Cora could be the next big thing in personal transport will have to wait, as the company is privately owned. That said, there's another high flyer in Page's arsenal right now -- Alphabet itself. As big tech continues to charge higher, shares of Google's parent company are teetering on the edge of another breakout.
Long story short, shares could be headed much higher in the short-term.
To figure out how to trade it from here, we're turning to the chart for a technical look at Alphabet's price trajectory.
Alphabet's price action has spent just about all of 2018 forming an ascending triangle pattern, a bullish continuation setup that's formed by uptrending support, along with horizontal resistance. This resistance is sitting just above $1,175 for Alphabet's class C shares and right near $1,200 in GOOGL, Alphabet's class A shares.
Simply put, as Alphabet bounces in between those two technically important price levels, shares have been getting squeezed closer and closer to a breakout through their price ceiling. When that happens, we've got a clear signal that buyers are still in control of things in Alphabet -- and that it's time to join them.
Relative strength, the indicator down at the bottom of Alphabet's chart, adds some extra confidence to the upside setup here. That's because relative strength has been in an uptrend of its own since mid-September, signaling that Alphabet's shares are systematically outperforming the rest of the broad market right now. As long as that relative strength uptrend remains intact, Alphabet is statistically predisposed to keep on outperforming.
Risk management is key, particularly in this market. A violation of prior lows hit at the beginning of March would be a signal that Alphabet's bullish chart setup is busted.
Luckily for Alphabet bulls, we're a long way from that right now. Both classes of this stock are testing breakout territory this week -- a material breakout through that line in the sand triggers a fresh buy signal in this tech giant.