Alphabet stock breaks above April peak as price flips bullish from AI-driven dip
The stock opened at $160 and surged by 4.4% to an intraday high of $167
Alphabet Inc. (GOOGL) stock has staged a powerful recovery this week, reversing the steep 10% decline that rattled investors last week. The initial drop stemmed from market fears that AI-powered search rivals might erode Google’s dominance in the search business. But the story has shifted.
Momentum turned bullish on Monday and gathered strength through Wednesday, as GOOGL posted three consecutive daily gains. Yesterday’s price action stood out. The stock opened at $160 and surged by 4.4% to an intraday high of $167, surpassing April’s high of $166 and decisively breaking through the 50-day EMA at $161.5. Although it closed slightly below the peak at $165.4, the move wiped out all losses recorded earlier in May.
GOOGL stock price dynamic (Feb - May 2025)
By the numbers, the month-to-date gain now sits at 3.2%, while the week-to-date gain has reached 6.3%. Importantly, this rebound came on strong volume, confirming growing buyer conviction. Technical sentiment also shifted as the RSI moved from bearish levels into bullish territory, validating the recent surge.
GOOGL EMA breakout and RSI shifts from bearish to bullish signals bullish outlook
However, early trading today, Thursday, May 15 shows some intraday weakness. During the pre-market session, GOOGL pulled back to around $163.8. This may be a healthy retracement, possibly setting up a retest of the breakout level near $161.5, now acting as support through both the prior resistance and the 50-day EMA.
The next upside target lies at $170, a price ceiling from March. But to reach that level, GOOGL must first break above yesterday’s high at $167. That will be a key test for the current bullish momentum.
In summary, Alphabet’s stock has flipped the narrative from concern to confidence, supported by technical breakouts, volume strength, and shifting sentiment. How price behaves around $167 and $161.5 in the next sessions may determine whether the stock extends higher toward $170 or consolidates in the near term.
Alphabet stock rebounded after the CPI data miss and held firm above the $156.5 support level. The rebound gained traction as the stock climbed nearly 8 per cent from the May 7 low.
