GOOGL stock targets key $164 resistance after impressive recovery from recent lows
GOOGL rebounds from early losses
Alphabet Inc. (GOOGL) stock price has started the month of May with a clear bullish trajectory, demonstrating positive price action following a difficult start to the week.
On May 1, the stock gained 1.9%, reaching a three-day high at $162 before closing slightly lower at $161.30. This move marked the second consecutive bullish day for GOOGL, which helped reduce its losses for the week and shift the sentiment toward a more optimistic outlook.
As of May 2, GOOGL has continued to build on this momentum, rising by 0.7% in premarket trading to reach $162.50. This price increase has effectively erased the earlier losses seen this week, bringing the stock closer to testing the significant resistance level at $164, which could challenge the upside movement. Moreover, GOOGL is now just 2.2% away from the April high of $166.20, further indicating a potential for continued upward movement if these key levels are reclaimed.
Positive sentiment from Microsoft earnings boosts GOOGL’s near-term outlook
The bullish movement comes in the wake of positive market sentiment influenced by strong earnings reports, particularly from Microsoft, which has bolstered investor confidence in tech stocks. While the short-term rally in GOOGL’s price seems to be partially driven by this sector-wide optimism, it’s important to note that other factors, such as the uncertainty surrounding the trade policies of the Trump administration, could cap the potential for sustained gains. These geopolitical concerns, especially regarding tariffs, could affect tech stocks' upside momentum in the medium term.
At the same time, GOOGL’s current price is challenged by the 50-day exponential moving average (EMA), which is now at $163 and could serve as a key resistance level for price action in the coming sessions. On the downside, a solid support level is seen near $157.70, which could cushion any potential retracement.
In summary, Alphabet Inc. stock has shown impressive resilience, reversing earlier losses and positioning itself close to the breakout of key resistance levels. However, the ongoing trade uncertainties pose a risk to this bullish momentum. Therefore, investors will need to watch these critical levels closely to assess whether the recent gains can be sustained in the face of external pressures.
Alphabet rebounded from a low of $155.50 after a brief pullback that had waning volume. The tech rally, particularly in Microsoft, helped lift Alphabet shares and resumed the uptrend.
