Alphabet stock holds above 100 EMA as price consolidates after 2.8% slide

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Alphabet holds above key EMA support

Highlights

Alphabet holds above 100 EMA after sharp 2.8% reversal from $321 to $312
GOOGL RSI shows neutral momentum intraday but daily indicators favour broader bullish trend
Investors await EU ruling on Alphabet-Wiz deal as TPU narrative drives long-term sentiment

Technically, Alphabet stock has been consolidating for the past three trading days between $322 and the 1 hour 100 EMA. This range-bound action has neutralised short-term momentum. The 1 hour RSI is currently flat, offering no immediate directional bias. However, both the 4 hour and daily RSI indicators still reflect bullish territory, indicating that the broader uptrend structure is intact. Price is also trading above the 50 and 100 EMAs on the intraday chart, reinforcing the view that the medium-term bullish bias is still active unless those support levels break.

Alphabet price chart (Nov 2025 - Jan 2026). Source: Tradingview

From a fundamental perspective, investor sentiment is being shaped by Alphabet’s positioning in the AI hardware space. The company's strategic TPU partnerships have drawn strong attention. Anthropic recently secured access to one million TPUs in a deal valued in the tens of billions of dollars. Meta is also reportedly in talks to adopt Google’s chips by 2027. Analysts are forecasting over 40% growth in TPU sales in 2026, as cloud providers seek to shift toward in-house chip solutions to cut costs and boost performance.

Market cautious on regulatory risk despite bullish outlook for TPU chip growth

However, these positive developments have not yet translated into a sustained price rally. Market participants appear to be waiting for regulatory clarity on Alphabet’s $32 billion bid to acquire cybersecurity firm Wiz Inc. The European Commission is set to make a decision by February 10. While U.S. antitrust authorities already approved the deal in November, investors are watching to see whether the EU will follow suit or open an in-depth investigation. Concerns linger about whether potential fines or delays could weigh on the stock.

A rebound from current EMA support could lift the stock above the $322 consolidation ceiling and open the path toward retesting the $328 all-time high. But if Alphabet stock breaks below the current support zone, it would signal a shift into bearish territory, especially if no positive sector-wide or fundamental catalyst emerges in the near term.

In recent analysis, we discussed how Alphabet held triangle support near $316 as EMAs guided price toward breakout. We noted that Google’s TPU patents and raised GOOGL targets toward $365 to $400 strengthened its AI leadership.

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