Alphabet Inc. (Nasdaq: GOOG), the tech giant formerly known as Google, is set to rally in the last half of the year. The stock has formed one of my favorite chart patterns – an ascending triangle.

These patterns are my favorite for two reasons. One is that they are easy to spot, as you can see in the chart below. 

Chart showing ascending triangle formation in Alphabet Inc. (GOOG) shares

But the big reason is because the ascending triangle pattern gives specific price targets once a key level has been broken. Based on the pattern's price targets, I expect Alphabet shares to soar more than 20% in the coming months.

To find those price targets, you simply look at the height of the formation. In this case, it's $200 from the red resistance line to the start of the green trendline. Once shares break above the red trendline, we can expect to see a rapid $200 rally for shares of Alphabet. Likewise, a break below the green trendline would send shares racing $200 in the other direction.

However, ascending triangles tend to be continuation patterns, meaning that, if the trend was up heading into the formation, the stock is expected to break out higher on most occasions.

Chart showing height of ascending triangle formation in Alphabet Inc. (GOOG) shares

The bottom line is that Alphabet stock is setting up a nice ascending triangle pattern, and a breakout could come any day. When it does, you can expect to see its share price jump $200 by the end of the year. Considering most of these patterns are bullish, we can look for shares in Alphabet to rally 20% in the coming months.

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