Technical analysis – Alphabet shares fall 2% and test the 200-day moving average

Alphabet (GOOGL.US) shares are extending their decline today, fighting to preserve the broader uptrend while testing the 200-day exponential moving average (EMA200) on the daily chart. Alphabet remains one of the three largest companies in the world and has delivered several record-breaking quarters in terms of both earnings growth and sales momentum.

• Sentiment around the company has weakened noticeably in recent months, while investors have increasingly moved to take profits. As a result, the stock is now down around 20% from its all-time highs.
• Since February 2025, Alphabet shares have fallen below the EMA200 four times, with only one of those moves developing into a substantially deeper decline, following the trade-war announcements made by Donald Trump in April 2025.
• The shares are currently trading at around 10 times sales, roughly 17 times earnings, and about 21 times estimated earnings over the next 12 months, taking into account that Alphabet booked approximately $100 billion in extraordinary gains related to its stake in Anthropic.

Alphabet (GOOGL.US) chart

Investors are trying to keep the stock above $330 per share today, which could prove crucial for short-term momentum. A close below the 200-day exponential moving average could signal that the current weakness is not yet over, while a successful defense of the $330 area followed by a rebound toward $345 could potentially open the door to a renewed bullish move. In the longer term, the key resistance level remains around $400 per share, corresponding to the all-time highs reached in June.

Source: xStation5

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