Alphabet stock price two-day drop wipes out early July gains ahead of FOMC minutes
Alphabet stock slides 2.7% as $175 turns into resistance
Alphabet Inc. stock price has faced a decisive shift this week, reversing all the gains accumulated in the first week of July.
The past two days have closed lower, both on expanding volumes that exceeded the prior three days of last week. This surge in trading volume signals a clear intensification of selling pressure and a stark change in investor sentiment.
Highlights
-Alphabet slides 2.7% this week as expanding volume confirms selling pressure
-Alphabet retests $175 resistance after rebounding from six-day low at $172.8
-FOMC minutes later today may decide if Alphabet holds above $170
Yesterday, Tuesday, Alphabet broke below the critical $175 support level, falling to a six-day low at $172.8. However, the decline found immediate support at the 50 EMA on the four-hour chart, which helped push the price back up to close at $174.4. As of today’s premarket session, Alphabet stock is posting a week-to-date loss of 2.7% and currently tests the broken $175 level as a new barrier against further recovery. This former support has now turned into resistance, strengthened further by the 20 EMA on the four-hour chart.
GOOGL stock price dynamics (Dec 2024 - July 2025). Source: TradingView
Technical factors suggest that the $175 resistance is likely to hold, setting the stage for continued downward movement. The next critical support zone sits near the 100 EMA on the four-hour chart, around the $170 psychological level. This area also coincides with the base of the bullish channel that has carried Alphabet stock higher since April, implying that the current slide is more likely a retracement rather than a trend reversal.
Alphabet stock volume spike to the highest in 6 days reinforces bearish sentiment
Supporting this view, the crossover of the 50 and 100-day EMAs earlier in July signals that the broader uptrend is still intact despite the recent pullbacks. However, the RSI momentum, while still in bullish territory at 53 during today’s premarket, has been steadily weakening. If today’s decline accelerates, the daily RSI could slip into bearish territory, potentially inviting more aggressive selling.
Market participants now turn their attention to the FOMC minutes scheduled for release later today during the North American session. This report provides detailed insights into the central bank’s most recent meeting and their economic outlook, which can shape investor expectations on interest rates.
A hawkish tone suggesting tighter monetary policy would likely boost the U.S. dollar and push Treasury yields higher, creating additional headwinds for growth stocks such as Alphabet. In this scenario, selling could intensify, sending the price further toward $170 support. Conversely, a dovish approach indicating patience or a more accommodative stance could ease pressure on equities, allowing Alphabet to attempt another test of the $175 resistance or even stage a stronger rebound.
Alphabet dropped on tariff fears from Trump's announcement and closed above $175 support. The stock bounced to $177.4 premarket, but Monday’s volume hinted at stronger selling.
