Alphabet Inc. (GOOGL) Shares Drop to Almost Six-Month Low
Alphabet Inc. (GOOGL) shares closed below $150 yesterday, a level last seen in late March this year.
According to Barrons, the stock is under pressure due to ongoing litigation with the US Department of Justice (DOJ), which:
claims Google holds a monopoly over software used for buying and selling digital ads, alleging the company uses its size to stifle competition.
argues that Google employed unlawful methods to block rival ad technologies, forcing advertisers and publishers to use its systems.
The DOJ suggests that Google should divest a product called Ad Manager.
Google, however, maintains that the digital advertising market is more competitive than ever, and the government's arguments dont reflect the current state of affairs. The company asserts that its case involves website ads, while most of the advertising industry has shifted to apps, social media, and Smart TVs.
As the case proceeds, it may act as a bearish factor for Alphabets stock price. Technical analysis of GOOGL shares today shows:
Since May last year, long-term price movement has formed an upward linear regression channel (blue), with the current price dropping below the channels lower boundary and the RSI indicator entering the oversold zone for the second time this year.
Short-term price movement since late April 2024 forms a downward linear regression channel (red), with the median line acting as resistance (indicated by the red arrow) a bearish signal.
Potential support levels for GOOGL shares include:
The psychological $150 level.
A bullish gap zone around $146.
The lower boundary of the red channel.
Given this, its reasonable to expect GOOGLs stock price may recover in the coming days from these support levels, especially if there are signs the trial could conclude in Alphabet Inc.'s favour.
Read more: https://fxopen.com/blog/en/oa-alphabet-inc-googl-shares-drop-to-almost-six-month-low/
Text source: Forex Trading Blog
