Watch These Alphabet Stock Levels After Report Google Parent Weighing $23B Purchase

Alphabet (GOOGL) shares will beryllium attraction connected Monday aft nan Wall Street Journal reported Sunday that nan Google genitor is successful advanced discussions to get cybersecurity startup Wiz for astir $23 billion, citing group acquainted pinch nan matter. If nan woody were to proceed, it would people nan tech behemoth’s largest ever acquisition.

Below, we return a person look nan Alphabet’s weekly chart and usage technical analysis to place important levels to watch retired for.

Weekly Reversal Amid Decreasing Trading Volumes

Since bottoming retired astir nan 200-week moving mean (MA) early past year, Alphabet shares person continued to inclination higher, pinch investors promptly buying nan dips.

More recently, nan banal climbed to a record high connected Wednesday, but closed little for nan week, perchance mounting nan shape for a retracement. It’s besides worthy pointing retired that trading volumes person trended little since nan banal gapped astir 7% aft Bloomberg reported successful mid March that nan tech elephantine was successful talks to licence its Gemini artificial intelligence (AI) models to Apple (AAPL), perchance alluding to slowing buying momentum.

Monitor These Key Levels During Retracements

If a pullback eventuates, investors should show 3 cardinal areas wherever nan banal would apt brushwood support.

The first area to watch sits astatine $175, wherever nan shares whitethorn pull buying liking adjacent a bid of akin prices betwixt precocious April and early June.

A adjacent beneath this level could spot a retest of nan $150 area, a region apt to pull buyers adjacent nan rising 50-week MA and a cardinal horizontal line linking respective anterior grounds highs successful nan banal from November 2021 to January this year.

Further weakness could trigger a autumn to astir $134, wherever bargain hunters whitethorn activity lower-priced buying opportunities adjacent a multi-year trendline.

Watch This Longer-Term Price Target

To gauge a imaginable longer-term upside price target, we tin return nan a bars shape from nan stock’s upward move betwixt March past twelvemonth and January this twelvemonth and overlay it from nan March swing low. This projects a target of astir $215, an area wherever nan banal whitethorn look trading pressure, particularly if different technical indicators constituent to overbought conditions astatine nan aforesaid time.

The comments, opinions, and analyses expressed connected Investopedia are for informational purposes only. Read our warranty and liability disclaimer for much info.

As of nan day this article was written, nan writer does not ain immoderate of nan supra securities.

Investopedia requires writers to usage superior sources to support their work. These see achromatic papers, authorities data, original reporting, and interviews pinch manufacture experts. We besides reference original investigation from different reputable publishers wherever appropriate. You tin study much astir nan standards we travel successful producing accurate, unbiased contented successful our editorial policy.