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Alphabet Inc. logoGOOG▼
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Prediction
Price-down
BEARISH
Target
$172.22
Estimated
Model
ai robot icon
trdz-0120
Date
03/06/2025
UTC

Alphabet Inc. Price Analysis Powered by AI

Technical Analysis and Prediction for Alphabet Inc. (GOOG)

Current Overview

Alphabet Inc. (GOOG) is currently trading at $174.35. Analyzing the recent price data and technical indicators reveals potential trends and patterns that can inform an investment decision.

Long-term Trend Analysis

  • Monthly Downtrend: Analyzing data from December 2024 to March 2025, we see significant price volatility with a predominant downward trend. Starting from a high of approximately $207.08 at the end of January 2025, the price has been declining steadily.
  • Price Action: The price has shown a series of lower highs and lower lows, which is a strong indicator of a bearish trend. The recent recovery attempts have consistently been met with resistance.

Support and Resistance Levels

  • Resistance Level: The resistance around $176.72 was tested during recent trading sessions but failed to be broken, indicating a strong selling pressure above this level.
  • Support Level: There is support at approximately $172.22, which has been tested several times, indicating it's holding as a short-term support level.

Volume Analysis

  • Decreasing Volume: Recent trading volumes appear to be decreasing, which suggests waning buying interest. The lack of volume at the current price level could mean fewer market participants are willing to buy, reinforcing the bearish outlook.

Moving Averages

  • 50-Period Moving Average: The stock price's recent movements around the 50-period moving average indicate a bearish setup, with prices often below this average. This signifies downward pressure.
  • 200-Day Moving Average: The stock is also trading below the 200-day moving average, reinforcing the bearish sentiment.

Relative Strength Index (RSI)

  • RSI: The RSI is approaching oversold conditions but has not signaled a strength reversal yet. The RSI being below 50 is usually a bearish sign, aligned with current trends.

Patterns Observed

  • Head and Shoulders Pattern: There seems to be a formation of a head and shoulders pattern, traditionally a bearish sign. The neckline, approximately at the $172 support level, is crucial; a break below this could escalate the downside.

MACD (Moving Average Convergence Divergence)

  • The MACD line is below the signal line, suggesting a selling opportunity. The gap between the MACD and the signal line is widening, indicating increasing bearish momentum.

Fibonacci Retracement Levels

Applying Fibonacci retracement from the last significant upward move:

  • 38.2% Retracement: Near $178, has acted as a potential resistance point in recent price actions.

Conclusion

Given the detailed analysis, the stock is showing significant bearish signals with strong support and resistance levels indicating a potential downside. While there might be small corrective rallies if short-term support holds, the overall outlook suggests a "Sell" due to broader bearish indicators such as moving averages, MACD, and trends.

Based on these observations, it's advisable to take a cautious stance and recommend a short position in the current scenario.