Alphabet stock opens June under pressure as AI monopoly trial weighs on sentiment
Price hovers above 100-day EMA near $167.48
Alphabet Inc. shares open the new month sharply lower as bearish sentiment builds ahead of the U.S. court ruling on Google's search practices.
During premarket trading on Monday, June 2, the stock trades at $168.00, marking a 2.3% drop from last week’s close and returning to the key support region near $167.48. That level aligns with the 100-day EMA, which helped cushion last Friday’s decline.
- Alphabet stock opens June 2.3% lower as court uncertainty weighs on sentiment
- Price hovers above 100-day EMA near $167.48 after Friday’s bullish Doji reversal
- Break below 0.618 Fibonacci targets $166.00 support zone near 20-day EMA
June's bearish open comes after a volatile close to May. On Friday, GOOGL initially dropped from $171.27 to a six-day low of $167.48 before rebounding sharply by 2.76% to reach $172.10. Price then closed at $171.80, forming a bullish Doji candlestick supported by increased volume, the highest in four prior days. That technical signal typically suggests a potential reversal, but today’s opening drop raises concerns that sentiment is instead shifting due to external pressure.
GOOGL stock price dynamics (Feb - May 2025). Source: TradingView
Investor anxiety appears to center around developments from last week’s antitrust proceedings. A key issue raised was whether Google may extend its dominant position into AI-powered search. The court is now weighing remedies, and the uncertainty around regulatory outcomes may be causing hesitation among market participants.
Alphabet medium-term trend intact as 20 EMA crosses above 50 EMA on daily chart
Technically, the stock now trades below the 0.618 Fibonacci retracement level from its recent bullish swing. A further breakdown during regular trading hours could expose the 0.786 retracement level near $166, which aligns closely with the 20-day EMA. This confluence suggests a strong support zone that could absorb further selling pressure if price weakens.
On the upside, last Friday’s high at $172.10 stays valid as a near-term target, but GOOGL must reclaim the Fibonacci 0.618 and 0.50 levels to reach that point. Those retracement levels, coupled with increased investor caution from regulatory headlines, form a barrier that bulls will need to clear to regain momentum.
Despite the current pressure, the broader trend that began in April is still intact. The 20 EMA recently crossed above the 50 EMA on the daily chart, supporting a medium-term bullish view. If buyers defend the $166.00 area and sentiment stabilizes, price may resume its upward trajectory through June. For now, price action and court headlines will likely dictate Alphabet stock price short-term direction.
Alphabet stock rose 8.5% in May after bouncing from bearish patterns driven by shifting Fed expectations. Price approached $172.2 as technical momentum improved into the month’s close.
