Pro Charts: Stocks & ETFs

Game Over: Alphabet (GOOGL) Tags Long-Term Resistance

Updated: May 06, 2024 | Published: May 05, 2024
Verified Investing
By Verified Investing
Game Over: Alphabet (GOOGL) Tags Long-Term Resistance

Shares of Alphabet (GOOGL) surged on earnings as the stock jumped over 10%. However, from a technical analysis standpoint, this may be a significant top in the stock.

On the earnings surge, Alphabet tagged a long-term trend line going back 25 years. Technical investors note the dot-com bubble high on Alphabet and connect it through the high in 2021 (before the bear market of 2022). This line extends out and was tagged (to the Dollar) on the earnings pop.

This does not bode well for price action in the coming months for Alphabet. The dot-com high saw a 65% drop and the 2021 high saw a decline of 45%. This leads investors to conclude there could be at minimum a 25% price correction.