Watch These Alphabet Price Levels as Stock Pops After Google Antitrust Win

Alphabet (GOOGL) shares jumped Wednesday after a federal judge ruled Google doesn’t have to sell its flagship Chrome browser, alleviating worries it could be forced to break up its business.

The stock was up over 8% in recent trading near $229, leaving it on track to close at a record high after climbing as high as $230.86 shortly after the open.

Heading into Wednesday’s session, Alphabet shares had gained about 12% since the start of the year, though they trailed returns of top-performing Magnificent Seven stocks over the same period amid antitrust concerns and worries about AI-driven disruption.

Below, we take a closer look at Alphabet’s weekly chart and apply technical analysis to point out price levels worth watching.

Right-Angled Broadening Formation Breakout

Alphabet shares have oscillated in a right-angled broadening formation since March, with the price recently rallying toward the pattern’s upper trendline.

However, the stock broke out to an all-time high after Wednesday’s open, potentially setting the stage for a continuation of the longer-term uptrend.

The relative strength index confirms strong price momentum, though a move into overbought territory would increase the chances for near-term profit taking.

Let’s use prior price action to consider how a longer-term trend may play out on Alphabet’s chart and also identify two support levels worth monitoring during possible retracements in the stock.

Uptrend Analysis

Investors can forecast how the stock’s current move higher may evolve by using bars pattern analysis, a study that uses prior price bars to project future directional movements.

When applying the technique to Alphabet’s chart, we extract the stock’s trending move higher from the March 2020 pandemic low to the November 2021 high and overlay it from this year’s April low. The analysis forecasts a target of around $395 and indicates the bullish period could last until December next year if price action rhymes with the prior move.

This earlier trend was selected as it followed a pullback in the stock of around 35%, similar to how the current move higher commenced after a comparable drawdown.

Support Levels Worth Monitoring

During retracements in the stock, investors should initially monitor the $192 level. This area could attract support near last year’s prominent July peak, which closely aligns with a range of corresponding trading activity situated just below January’s swing high.

A deeper pullback in Alphabet shares may bring the $151 level into play. Investors could seek to accumulate shares in this location near a horizontal line that connects several peaks and troughs on the chart extending back to the notable November 2021 high.

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As of the date this article was written, the author does not own any of the above securities.