Alphabet stock rises 0.35% premarket as light volume casts doubt on rally
Alphabet slides over 1.5% Monday
Alphabet Inc. (GOOGL) stock declined sharply on Monday, dropping over 1.5% to a low at $175.68 before settling at $176.76.
This setback came as part of a broad weakness in U.S. equities after President Donald Trump announced new tariffs against seven countries, including Japan. This intensified fears of trade disruptions and potential setbacks for major technology companies.
- Alphabet slides over 1.5% Monday on tariff fears but holds above key $175 support level
- Tuesday's premarket bounce to $177.4 signals investor confidence despite macro headwinds
- Volume spike on Monday hints at stronger selling while RSI above 50 keeps trend bias positive
The tariff shock interrupted the previous week’s recovery momentum and forced GOOGL to stay within the $181 resistance and $175 support range for a fifth consecutive day. This continued consolidation indicates hesitation among investors, as they weigh macroeconomic risks against Alphabet’s growth prospects.
GOOGL stock price dynamics (Dec 2024 - July 2025). Source: TradingView
By Tuesday's premarket trading, GOOGL showed a slight uptick to around $177.4, up 0.35% from Monday’s close. However, this modest rise has not erased the weekly loss of more than 1%. And despite these short-term setbacks, the stock has managed to secure a 0.7% gain for July so far. This signals underlying investor interest, driven by confidence in Alphabet’s broader business outlook. The company continues to benefit from strong positions in online advertising and its investments in artificial intelligence, which provide a foundation for long-term growth even as it faces challenges from new AI-focused rivals threatening its core search business.
Alphabet RSI stays above 50 despite Monday’s heavy sell volume
On the technical side, the volume pattern raises concern. Monday’s decline occurred on higher volume compared to the two previous days, which had rising prices but declining volume. This suggests stronger selling interest and hints that Tuesday’s early gains might lack firm support from market participants. However, the relative strength index on both the daily and four-hour charts stands above 50, pointing to a general bullish bias in the broader trend.
Looking ahead, the 20 EMA on the four-hour chart sits close to $175, reinforcing this level as an important near-term support. If sellers push the price lower again, buyers may see this level as a potential re-entry point to defend against deeper drops. On the upside, traders continue to focus on the $181 level, which matches the double top from last month and serves as a critical target if the stock manages to attract renewed buying momentum.
So while near-term selling pressure may challenge the stock, Alphabet holds to its broader upward trajectory, supported by strong technical structure and optimism surrounding its long-term business prospects.
Alphabet stock fell as insider selling and regulatory threats dampened investor sentiment. Price pulled back from $179.7 as it struggled to break above the $181 resistance.
