Alphabet Stock Maintains a Consistent Upward ChannelOver the past five trading sessions, Alphabet's (Google) stock has managed to sustain a moderate bullish bias, with a gain of over 4%, as the price has settled around the $170 level. So far, the stock has avoided significant pullbacks amid recent announcements of new integrations and advancements in artificial intelligence within the Google ecosystem.
On one hand, the company announced the integration of AI into its search engine, powered by its Gemini model, along with the introduction of a new “Agent Mode”—a feature that allows users to delegate complex tasks for the AI to handle autonomously. These announcements have been well received by the market, as they reinforce Alphabet’s commitment to innovation and maintaining a strong user base. If these new projects generate solid value, they could be crucial in sustaining buying pressure on the stock.
Bullish Channel Remains Intact
Since April 7, a consistent ascending channel has been forming in the stock’s price action. So far, recent bearish corrections have been insufficient to reverse the overall short-term trend. As long as the stock stays above the $170 level, the bullish bias is likely to remain intact, potentially extending the duration of the current upward structure.
ADX
The ADX line has shown a notable decline, approaching the neutral 20 level. This suggests that recent price movements are losing directional strength, possibly due to the price facing a nearby resistance zone.
RSI
The RSI remains above the neutral 50 level, indicating that buying momentum still dominates in the short term.
Key Levels:
$170: Current barrier, coinciding with a zone of indecision observed over the past several weeks. Sustained bullish moves above this level could reinforce buying sentiment and strengthen the current upward channel.
$175: Distant resistance aligned with the 100- and 200-period moving averages. A breakout above this area could lead to a steeper and stronger short-term uptrend.
$160: Nearby support, marking the lower boundary of the ascending channel. A break below this level could jeopardize the existing bullish formation.
Written by Julian Pineda, CFA – Market Analyst
