Cracks are starting to show on the Google (Alphabet) chart, signaling potential trouble ahead. The price has broken through two key support levels, raising concerns for the stock's short-term outlook.
The first crack appeared when Google broke below a long-term uptrend line (marked in orange), which has connected the lows since February 2023. This line had been providing solid support for the stock throughout the year. The second blow came when Google broke the yellow horizontal support, a level that had been a key resistance at the start of the year and later served as support in both April and August. The loss of both dynamic and horizontal support is generally seen as a bearish sign, signaling a shift in sentiment.
As of now, the outlook for Google appears bearish, and the sentiment will likely remain negative unless the stock can climb back above the yellow resistance level. However, the probability of that happening in the near term seems low given the recent breakdown of key levels.