Alphabet has been experiencing a corrective phase since May, but recent technical indicators indicate a possible stabilization and rebound. The stock has rallied after a counter-trend buy signal from the DeMARK Indicators® and has reclaimed support from its 200-day moving average, currently around $337.
Analysts note that while long-term momentum has weakened, the stock remains in a secular uptrend, and short-term indicators are turning positive, suggesting a potential for further gains. Initial resistance is seen at previous peaks near $376, with a breakout above this level potentially leading to further upside towards $402.
However, a decisive breach of the 200-day moving average could signal a deeper correction. The monthly chart indicates a need for consolidation before the long-term uptrend can resume, as long-term indicators have shown deterioration. Despite this, the stock's position above the rising monthly cloud model supports the ongoing secular uptrend.
Overall, while GOOGL's long-term setup suggests continued consolidation, the short-term outlook appears improved, positioning the stock for potential outperformance against the S&P 500 Index (SPX)