Alphabet (GOOGL) has spent much of the correction since May consolidating near support, but recent price action suggests selling pressure may be easing as the stock becomes oversold. Although momentum on longer horizons has weakened, GOOGL remains within its broader uptrend, and improving short-term indicators point to a possible rebound.The daily chart has improved since the stock generated a counter-trend buy signal from DeMark Indicators on Thursday. The move helped GOOGL recover the rising 200-day moving average, now around $337. The previous signal appeared near March’s low and preceded a sharp advance. Daily stochastic readings have turned upward from oversold territory, while the MACD has also issued a buy signal, raising the odds of near-term upside.The first major resistance zone lies near $376, marking former peaks and presenting a practical short-term target. A sustained break above that level could open the way toward $402, the next area of resistance. Conversely, a decisive fall below the 200-day moving average would weaken the longer-term technical picture and increase the risk of a deeper correction.Monthly indicators still show deterioration. Stochastics have moved lower from overbought levels, and the MACD histogram has contracted, signaling reduced momentum compared with earlier in the year. Even so, shares remain well above the rising monthly cloud model that defines the broader uptrend. The current pattern therefore looks more like consolidation than a major bearish reversal, with range-bound trading potentially resetting the market for another advance.The relative chart offers a similar view. Alphabet has traded broadly in line with the S&P 500 (SPX), leaving its long-term relative trend neutral. However, the stock-to-index ratio has found support at levels associated with the March and July lows. A counter-trend DeMark buy signal points to the possibility of near-term outperformance against the benchmark.Overall, GOOGL’s longer-term structure remains intact, while the short-term setup has improved. With support near the 200-day moving average and momentum indicators turning higher, Alphabet appears positioned for a rebound and potential outperformance versus the S&P 500. —Katie Stockton with Will Tamplin
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