:max_bytes(150000):strip_icc()/GOOGLChart-fe9c927856d1400c8d2b993ec31fe300.gif "Watch these Alphabet stock price levels as the Google launch event begins")
Key findings
- Shares of Google parent company Alphabet will be in focus on Tuesday as the search giant’s highly anticipated annual “Made By Google” launch event begins.
- Since their record closing price on July 10, Alphabet shares have fallen by 15 percent. The reason for this was an industry-wide sell-off of technology stocks and the unfavorable ruling by a US federal judge that Google had violated antitrust law.
- Alphabet stock price could find support around $154 and $141, but face higher resistance at $175 and $191.
Shares of Google parent company Alphabet (GOOGL) will be in focus on Tuesday as the search giant’s highly anticipated annual “Made By Google” launch event gets underway. Analysts expect the company to unveil its next-generation smartphones there and provide more details on how it plans to integrate its Gemini artificial intelligence (AI) model into its mobile platforms.
The event comes at an opportune time for the Magnificent Seven member, helping him shift his focus away from a turbulent month in which his shares have plunged 15 percent since their record closing price on July 10. They were weighed down by an industry-wide sell-off in technology stocks and a U.S. federal judge’s unfavorable ruling that Google violated antitrust laws.
Below, we take a closer look at Alphabet’s chart and use technical analysis to identify key levels to watch given the potential for continued volatility in the stock price.
Alphabet shares remain in correction range
After the 50-day moving average (MA) crossed above the 200-day MA in May last year, forming a bullish golden cross signal, Alphabet shares trended steadily higher until they peaked after hitting a record high in early July this year.
Since then, the price has fallen by as much as 19 percent, putting the stock clearly in correction zone – which is usually considered a decline of at least 10 percent from a recent high.
Given the potential for volatile price swings in either direction for Alphabet stock, investors should keep an eye on the following key support and resistance levels.
Support price levels to monitor
A move lower could initially find support around $154, where a trendline connects the January swing high to an April price consolidation phase. Last week’s sell-off low and the upsloping 200-day MA are also nearby.
Selling below that level could send the stock back up to the $141 mark, a spot on the chart where market participants could look for buying opportunities near a horizontal line that connects several highs and lows between October and February.
Resistance price levels to watch
The first resistance to watch is at $175, just below the falling 50-day MA, where sellers could try to dump shares near the April 26 gap high, which also closely aligns with a series of similar trading levels in May and June.
Reclaiming this area could lead to a retest of the $191 region, a level on the chart that is likely to face significant selling pressure around Alphabet’s all-time high (ATH). A return to this area would represent an increase of about 18% from Monday’s close.
Alphabet shares rose 0.4% to $162.85 in premarket trading at around 7:00 a.m. ET.
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At the time of writing, the author does not own any of the securities mentioned above.
