Alphabet’s (Google) stock has experienced some significant swings in the short-term, with its latest retreat coming to an end around 18% below the stock’s 2023 high. However, the share price is exhibiting some signs of life in the last few daily sessions as it profoundly jumped above its 50-day simple moving average (SMA).
The momentum indicators are endorsing this bullish near-term bias. Specifically, the stochastic oscillator is sloping upwards near the 80-overbought zone, while the RSI reclaimed its 50-neutral mark for the first time since early February.
If the buying interest persists, the price could test the recent resistance region of 97.70. Conquering this barricade, the bulls could aim at the November high of 102.50 before the 2023 peak of 108.60 comes under examination. Even higher, further advances could cease at the July 2022 high of 120.00.
On the flipside, should the price reverse lower, immediate support could be met at the 92.50 hurdle. If that floor collapses, the stock might extend its drop towards the recent low of 88.80. Failing to halt there, the 2023 bottom of 85.40 could provide significant downside protection.
In brief, Alphabet’s stock seems to be in recovery mode after its steep decline encountered strong support. Hence, the 200-day SMA could be the next crucial barrier that the stock should overcome in order to extend its uptrend.