NEW YORK – Alphabet Inc. Class C (GOOG) stock closed the last trading session on a negative note, and early pre-market indicators suggest that bearish sentiment may carry over into the start of trading on Monday. For traders looking to make a move, a careful watch on key price levels will be crucial.
The tech giant’s stock ended the day at
0.88 (0.49%). The trading session was marked by significant volatility, with the stock opening strong at $180.78 and hitting a high of $181.58 before succumbing to selling pressure that drove it to a low of $175.50.
Here is a complete breakdown of the information traders need from the latest data.
The Day in Review: A Story of a Downtrend
A look at the 1-day chart reveals a clear bearish trend for Alphabet. After an optimistic open, the stock experienced a sharp sell-off in the first hour of trading. While it found some stability in the afternoon, it failed to reclaim its earlier highs and ultimately closed below the previous day’s close of $178.27. This inability to mount a recovery indicates that sellers were in control for most of the session.
Key trading day metrics:
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Open: $180.78
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High: $181.58
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Low: $175.50
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Closing Price: $177.39
What to Watch for on Monday
The most direct indicator for Monday’s open is the pre-market data, which shows the stock at $176.93, a decline of 0.26%. This suggests that Alphabet stock is likely to open lower on Monday, potentially gapping down from its previous close.
For investors considering their next move, two key price points from the last session will be critical:
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Support Level: The day’s low of $175.50 will act as a crucial support level. If the stock falls below this point on Monday, it could trigger further selling as it would signal a failure to hold the line.
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Resistance Level: The previous close of $178.27 will now serve as an initial resistance. For the stock to show any sign of a bullish reversal, it will need to decisively cross and hold above this level.
Is It Right to Invest Today?
Deciding whether to invest requires weighing the bearish short-term signals against the company’s long-term fundamentals.
The Bearish Case: The immediate momentum is negative. The stock closed down, and pre-market trading is also in the red. A break below the $175.50 support could lead to a further slide.
The Bullish Case: Alphabet remains a mega-cap leader with a market capitalization of approximately $2.14 trillion USD. Its P/E ratio of 20.10 is not excessively high for a tech giant, suggesting the valuation is reasonable. The stock is currently trading significantly below its 52-week high of $208.70, which some long-term investors might see as a discounted entry point. The company also offers a modest dividend yield of 0.47%.
Conclusion for Traders:
Based purely on the technical signals from the provided data, caution is advised for the start of trading on Monday. The negative pre-market activity points to a lower open.
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Short-term traders should watch if the stock can hold the $175.50 support level. A bounce from this level could present a buying opportunity, while a break below it could be a signal to sell or stay away.
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Long-term investors may not be swayed by a single day’s volatility. However, they might wait for signs of stabilization or a clear reversal before adding to their positions.
Ultimately, Monday’s session will likely be a battle between the current bearish momentum and the underlying strength of the company.
