Alphabet shares technical analysis: $350.81 resistance level in focus

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Alphabet flat today at $337.7

Highlights

Investors question whether Alphabet's increased capital spending on AI, including the upcoming Gemini 4 model, will generate strong returns.
Alphabet faces regulatory challenges and reports of investors moving funds to rival AI firms, impacting sentiment toward the stock.
Shares of Alphabet trade below key moving averages, with bearish momentum signals and a projected price range of $325.75 to $349.65 over the next 2 to 3 days.

Investor caution rises as AI spending outpaces immediate returns

Alphabet is under increasing scrutiny as investors question the potential returns from the company's rising capital expenditures in AI, a concern highlighted by Tradingkey and now affecting near-term sentiment. The upcoming launch of Google DeepMind's Gemini 4 AI model, confirmed by Moneycheck, draws further attention to Alphabet's ambitious AI strategy but also intensifies market focus on whether these efforts will deliver sufficient financial results. Additional pressures come from ongoing regulatory challenges and evidence of investor rotation to competing AI firms, as reported by Interactivecrypto, all of which contribute to a more cautious stance on the stock.

Bearish momentum confirmed as oversold signals suggest exhaustion risk

GOOGL/USD is now trading below the MA-20 ($348.77) and MA-50 ($347.75) on the hourly timeframe, and remains just under the MA-200 ($337.93) on the daily chart. The Ichimoku Kijun at $350.81 marks immediate resistance. Momentum is decisively bearish according to MACD and ADX. Short-term oscillators, including RSI, Stoch RSI, and CCI, signal oversold conditions, indicating seller exhaustion in the near term. Bull/Bear Power confirms intraday selling dominance, while the Awesome Oscillator remains bearish, in alignment with the current momentum setup.

Downside favored as stabilization hinges on holding key support

Over the next 2–3 trading days, the expected trading range for GOOGL is $325.75 to $349.65, reflecting the asset's typical volatility band. Scenario probabilities favor additional downside, with a 79% chance of further decline compared to a 21% chance of upward movement. The most likely case is stabilization near current levels, while a sustained bullish reversal would require a decisive move above resistance at $350.81. Should price break below $325.75, a deeper correction may develop.

Anton Kharitonov, expert at Traders Union, believes Alphabet is under persistent pressure as investor skepticism over its AI spending grows. He sees technicals as bearish, with the stock staying below key moving averages and momentum indicators confirming a negative setup. The cautious sentiment around Gemini 4’s launch, regulatory risks, and signs of rotation into rival AI names all undermine a case for immediate recovery. "Unless GOOGL reclaims $350.81, I view any bounce as a short-term reprieve rather than a trend reversal."

Earlier, analysts noted that Alphabet stock was experiencing range-bound trade amid ongoing regulatory risks and shifting institutional positions. The current analysis adds urgency to downside risks as bearish momentum prevails, making a break below $325.75 the key level that could signal a deeper correction in the days ahead.

Source of Data: GOOGL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.