Alphabet Google (Nasdaq: GOOG) share price has shown a tremendous recovery in 2023. The price action follows a brutal sell-off in 2022 which took the price to as low as $83. Alphabet is the parent company of Google and has a diverse revenue stream spread across search engines, social media, and cloud technologies. The company’s stock is currently 18% below its 2021 all-time high.
On Monday, the US stocks experienced a positive sentiment ahead of the key FOMC meeting and CPI report release. Alphabet stock price closed at $123.64 after rising 1.15% during the first trading session of the week.
In its Q1 earnings report, the Google parent company reported a revenue of $69.79 billion. While the figure was more the Refinitive’s estimate of $68.95, the net profits of the company still decreased from $16.44 billion to $15.05 billion. Since the release of this earnings report, Google share price has been surging.
The second leg of AI hype is also one of the driving factors behind the increase in Alphabet stock price. However, the latest analysis shows that the bulls are finally losing momentum after a strong upward rally that took the price from its March lows of $89.42 to the recent highs of $129.
The following NASDAQ: GOOG chart shows the clear levels of supply and demand on the chart. The most critical level on the chart is the $100-$101 region, which is also a key psychological level. The second major level is the $125 level which lies at the 0.618 Fib retracement level.
Last week, the price got rejected from the $125 level and is now trading at $123.64. If the Google share price doesn’t break above $125 soon, I expect the $113-$114 gap to get filled very soon. Today’s release of the CPI report and tomorrow’s FOMC meeting may act as a catalyst for this drop.
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This post was last modified on Jun 13, 2023, 14:24 BST 14:24