Watch These Alphabet Price Levels as Stock Pops After Google Antitrust Win

Alphabet (GOOGL) shares surged over 8% to a new record high near $229 on Wednesday after a federal judge ruled Google is not required to sell its Chrome browser, alleviating significant antitrust concerns regarding a potential business breakup. This breakout from a right-angled broadening formation signals a potential continuation of a longer-term uptrend, with technical analysis forecasting a target of approximately $395 and a bullish period extending until December next year. Investors should monitor key support levels at $192 and $151.

Analysis

Alphabet (GOOGL) shares experienced a significant rally, surging over 8% to a new record high near $229, following a favorable federal court ruling that Google is not required to divest its Chrome browser. This decision materially reduces a major antitrust overhang for the stock, alleviating investor concerns about a forced business breakup which had contributed to its relative underperformance against other Magnificent Seven stocks this year. From a technical standpoint, the price action signals a decisive breakout from a right-angled broadening formation that has been in place since March, suggesting a potential continuation of the longer-term uptrend. Further analysis using a bars pattern, which compares the current rally to the one following the March 2020 low, projects a potential long-term price target of approximately $395 with a bullish trend possibly extending until December of next year. While momentum is strong, the Relative Strength Index is approaching overbought levels, indicating the possibility of near-term profit-taking. Critical support levels to monitor on any pullback are at $192, near a prior peak, and a deeper support zone around $151.

Key Decisions for Investors

• Investors could interpret the positive legal catalyst and the technical breakout as a strong signal to initiate or add to long positions, as the primary antitrust overhang has been significantly diminished.
• It is prudent to monitor the identified support levels at $192 and $151, as these areas could present strategic entry points or opportunities to accumulate shares during potential market pullbacks.
• While the long-term outlook appears constructive with a potential target of $395, traders should remain aware that the Relative Strength Index is nearing overbought territory, which may precede short-term consolidation or a price correction.