Alphabet stock price is at risk of deeper pullback if Powell signals end of rate cuts
Alphabet Inc. [GOOGL] stock is currently facing near-term bearish pressure after breaking below a key technical formation. Earlier this week, GOOGL fell out of a seven-day triangle pattern that had formed below its all-time high at $328.9. The breakdown occurred on Monday, dragging the price below the 20 and 50 EMA on the 1-hour chart and touching a nine-day low at $311.3. Although the move initially appeared directional, price action has since turned choppy.
Highlights
- Alphabet down 4% week-to-date after triangle breakdown confirms short-term bearish momentum
- GOOGL rejected at $316.6 resistance as traders await Powell’s post-rate-cut comments
- Weekly RSI above 80 increases chances of correction if Fed guidance disappoints bulls
On Tuesday, GOOGL retraced higher to test the former support base of the broken triangle pattern, now converted into a resistance zone at $316.6. That zone is currently reinforced by the 20 and 50 EMA on the 1-hour chart. Price rejection from that area has stalled further gains and kept the short-term trend tilted to the downside. The inability to build on Tuesday’s bounce reflects the market's hesitation ahead of a major macro trigger.
Alphabet price dynamic (Oct - Dec 2025). Source: Tradingview
As of Wednesday, GOOGL stock is trading near $316.6 but lacks strong momentum. This reflects broader market caution as investors await the Federal Reserve’s interest rate decision later today. Market participants expect the Fed to cut rates, but the focus is on whether Chair Jerome Powell will signal more rate cuts or suggest that the easing cycle is nearing its end.
GOOGL needs dovish Fed tone to recover bullish momentum towards all-time high
A so-called hawkish cut where the rate is reduced but future cuts are downplayed could pressure growth stocks, especially those trading near extremes. GOOGL is already down 4% on the week, and such a development may deepen the pullback and end the stock’s three-week winning streak. A fall below $311.3 could expose support at the 20-day EMA near $305. If that level breaks, psychological support at $300 becomes more vulnerable.
Technically, GOOGL’s strong eight-month rally has pushed both the weekly and monthly RSI into overbought territory above 80. This is the first such reading since 2021 and suggests that a corrective phase could emerge if monetary support fades. However, if the Fed signals more rate cuts after today’s move, equity sentiment may recover. This would likely help GOOGL reclaim lost ground and possibly challenge a new all-time high before the weekend.
In recent analysis, we discussed how Alphabet fell 2.6% to $311.5 after breaking below triangle pattern support. GOOGL traded flat near $313 as the EU antitrust probe pressured market sentiment.
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