Google stock rebounds after early dip on positive trade sentiment
Price action indicates investor sentiment shift
Alphabet Inc. (Google) Class A shares began the week on a negative note, falling 1.8% and finding support at $146.20. However, this quick reversal laid the groundwork for a strong rally. By Tuesday, the stock had opened at $148.90 and surged 2.23%, surpassing the $150.60 resistance level and reaching $152.20. While the rally was capped by the 50-period moving average on the 1-hour chart, the price action indicated a shift in sentiment, turning the stock’s trend from bearish to bullish.
The boost in price momentum coincided with broader investor optimism, despite mounting regulatory challenges for Big Tech. Alphabet is facing potential fines from European regulators, a factor that typically pressures stock performance. However, investor focus seems to have shifted towards U.S.-China trade relations.
Google price dynamics (March - April 2025). Source: TradingView
President Trump mentioned that tariffs on imports from China could significantly decrease following a trade deal, which has provided a supportive backdrop for markets, including Alphabet’s stock. This eased trade tension could lead to reduced pressure on U.S. tech companies. The growing sentiment is reflected in the price recovery, as Google Class A shares are now up 1.7% for the week (as of Wednesday’s North American session).
Google stock RSI indicators point to increasing buying interest
The stock was setting up for a breakout at $155, surpassing both the 1-hour 20-period and 50-period moving averages. The technical indicators are reinforcing this shift. The 1-hour RSI has entered bullish territory, signaling increasing buying interest. Additionally, the 4-hour RSI is rising and nearing neutral territory, further suggesting that upward momentum could continue in the near term.
Key technical levels are now in play. $157, which acted as support in March, is now the next major resistance level. A break above this price would solidify the stock’s bullish stance and potentially open the door for further gains. However, if resistance holds, there’s a risk of a pullback towards the $146.20 support level, where buyers have previously stepped in. Traders are watching for a decisive move above the $157 level to confirm that bullish momentum will continue.
Google's stock resumed its broader downtrend and dropped over 9%. The decline accelerated on Monday, reflecting broader market weakness amid political threats.
