Cramer reveals why renowned technical analyst Larry Williams sees a bull market for Alphabet, Amazon and Coca-Cola stocks

On Friday, CNBC's Jim Cramer analyzed new technical analysis from expert chartist Larry Williams, whose own market indications imply that Alphabet, which is the parent company to Google, Amazon, and Coca-Cola are stocks to watch.

“Right now, the charts as interpreted by Larry Williams, suggest we’ve got incredibly bullish action in Google, very good bullish action in Amazon and money in the bank action in what we call knockout, Coca-Cola. I would not bet against Larry Williams.” Cramer said.

According to Cramer, Alphabet and Amazon have held up better than other big tech stocks that have been affected during this year's market fluctuation, which he said based on the analysis given by Williams.

Below are three analyses of the current and expected performance of the three companies.

The analysis given by Cramer for Alphabet is based on the company's C class stock, which trades under the acronym GOOG. GOOGL, the company's A-class stock, is not to be confused with this one.

Alphabet (Google)

Here is how Alphabet’s chart looks daily:

Source: CNBC.

It was stated by Cramer that Alphabet has a stable floor of support, this informs Williams that despite market volatility, Alphabet's shareholders have continued to buy the stock.

Cramer said, “According to Williams when a stock holds up like this while the broader market’s getting hammered, it’s one of the strongest patterns he knows.”

According to Cramer, there are even more indications that the stock is bullish.

The first indication is the blue line at the bottom of the chart, which is referred to as an on-balance volume indicator, and it measures the flow of volume. Cramer said the line reveals that stock volumes of Alphabet held above January lows in the months of February and March.

When looking at Alphabet alongside one of Williams' indicators that evaluates professional accumulation of a company, the stock is going sideways while the indicator line is rising, indicating that the stock is bullish, according to Cramer.

Below is the chart.

Source: CNBC

Amazon

According to Williams, “stock’s now bouncing hard off its lows and it's got more room to run.” Cramer went on to say that the stock of Amazon hasn't done as well as Alphabet.

Here's a look at Amazon's daily chart alongside its seasonal pattern, which shows how stocks normally perform at a particular time of the year:

Source: CNBC

Cramer said, “Just like with Google, this is exactly the time of year when Williams would expect a bottom based on the calendar.”

Coca-Cola

Though the analysis given by William suggests that stocks from Google and Amazon would perform well. Cramer noted that the tech sector's troubles this year may make their stocks unappealing to cautious investors. He said Coca-Cola (KO) would be a good defensive stock. 

The on-balance volume line is shown on Coca-daily Cola's chart below:

Source: CNBC

Because the company's volume has surged even as Coca-Cola stock has dropped from its recent highs, Williams believes that "large institutional money managers are buying it aggressively," according to Cramer.

According to the analysis given by Williams, the company’s seasonal pattern indicates that it will shortly bottom.

Below is the stock of Coca-Cola plotted with its seasonal pattern:

Source: CNBC

Cramer said “Coke is exactly the kind of stock that hedge funds love to own at this point in the business cycle, which is a key reason why it’s been able to outperform the major averages. Williams is betting that outperformance will continue.”

According to Cramer, Williams also believes there is a significant connection between Coca-Cola and sugar, which is an important component for the company.

Observe below and see the costs of Coca-Cola and sugar extended ahead by nearly a year in this chart.

Source: CNBC

Cramer said “You might expect the stock to go down after sugar goes up because it’s a major input cost for them, but when you push the data forward one year, Williams finds that Coke’s stock follows sugar. If the pattern holds, it means that Coke can continue to rally.”