Of the FAANG names, Alphabet (GOOGL) (GOOG) stock has surely been among the more disappointing so far this year.
Shares have “only” generated a return of 7.9% so far this year.
While that’s still better than the 6% return for the S&P 500, it lags the near-12% return for the Nasdaq. Further, it’s the lowest return in the FAANG group.
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Many concerns have been raised about Alphabet this year, despite the company’s stronghold on search (via Google) and video (via YouTube).
However, the advancements with OpenAI’s ChatGPT platform, as well as Microsoft’s (MSFT) multi-billion investment in the company has Alphabet investors worried about the potential long-term implications.
Not to mention, Alphabet’s own AI platform — Bard — had an embarrassing mistake, which actually helped kickstart a notable correction in the stock.
Let’s take an update on the charts, to see if Alphabet stock has bottomed or if more losses are on the way.
Trading Alphabet Stock (GOOGL)
Chart courtesy of TrendSpider.com
While Wall Street has been enjoying the past few trading sessions, you’d hardly notice that Alphabet stock is quietly working on its sixth straight daily gain.
Shares exploded higher off the January low, ultimately ramming into the 61.8% retracement of the larger range at $107.50.
Then all the AI-related worries hit and Alphabet stock tumbled down, giving up more than three-quarters of its recent gain. I’m sure many investors had expected the stock to retest the 2023 low at $83.34 — and for a while, it looked like it would.
Alphabet Back on the Mend
Now back on the mend, Alphabet stock is struggling with the 21-day moving average near $96.
If it can fight through this level, it opens the door back toward $100, then potentially back to $107.50.
While the stock’s price action has been discouraging, it has now put in three higher lows, a bullish technical development.
On the flip side, if resistance near $96 holds it will put $92 back in play, where Alphabet finds the 10-day and 50-day moving averages. Ultimately, bulls will want to see the stock hold $90 and if possible, avoid a retest of the recent low near $88.50.
If that low is retested, longs will want to see it hold or else they risk the stock trading back down into the mid-$80s.
