Google Alphabet Here is a chart illustrating Alphabet (GOOGL) stock price and RSI with a potential divergence analysis:
### **Key Features of the Chart**:
1. **Stock Price (Blue Line):**
- The price shows a steady rise toward the resistance level of **201.01**, marked by a red dashed line.
2. **Resistance Level:**
- The critical resistance level at **201.01** is highlighted. Watch for price action at this level to confirm either a breakout or rejection.
3. **RSI (Green Dashed Line):**
- The RSI indicator shows fluctuation, with a simulated divergence forming as the price makes higher highs, but RSI trends lower, signaling a weakening bullish momentum.
4. **Annotations:**
- A potential divergence zone is marked, indicating a key area where traders should look for confirmation signals, such as candlestick patterns or volume spikes.
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### **Interpreting the Chart**:
- **Bullish Case:**
- If the price breaks above **201.01** with strong RSI support and volume, it could invalidate the divergence, signaling continued bullish momentum.
- **Bearish Case:**
- If the price fails to break the resistance, combined with RSI moving downward, this confirms the divergence and a potential bearish reversal.
