Mapping the Market: Alphabet shares may be ready for a corrective rally

Shares in Google’s parent company, Alphabet, have been on the slide since May, losing more than ​30% peak-to-trough during that time. After such a slide, they might be due for ​a reprieve, if only temporarily, that could lift the stock by ‌about ​10%, technical analysis indicates.

Click here for a detailed technical analysis chart. Markets rarely move in a straight line and even strong downward trends can be interrupted by short-term rallies, called corrections.

Technical analysts use charts of recent price action to map out where a stock might ‌go in such a correction. One thing chart watchers look for in a falling market is support, which is a level that acts as a floor for prices. Crucially for the prospects of a bounce in Alphabet, the stock appears to have found support in the $270-$275 area.

When analysts search for support, they often use previous lows, which show the market’s reluctance to push the stock ‌below a certain level. Another source of support is percentage-based calculations of levels that markets often revisit after a big move. These are called Fibonacci retracements, and there is one at $274.57. ‌It marks the halfway point of Alphabet’s rise from April 2025 to May this year, according to data supplied by LSEG. The significance of this area of support is enhanced by the November 2025 monthly low at $270.70 and the March 2026 monthly low at $272.11.

During a potential corrective bounce such as Alphabet’s, analysts can use something called a trend channel to determine the scale of a stock’s fluctuations as it fell. A trend channel consists of a center ⁠line that ​plots the shares’ main course surrounded by parallel lines ⁠marking the key highs and lows of the move. Alphabet’s lows this week and last pulled it beneath the bottom of the trend channel. Now that it has bounced back above, the center line of the trend channel ⁠is a likely target, which is around $315-$320.

Technical analysts use measures of momentum and volatility to corroborate a view that a stock will rise or fall. These include the Relative Strength Index, or RSI, which measures ​the time and scale of a move to give a reading on momentum. Moving Average Convergence Divergence, called MACD, is another tool. It compares two moving averages to gauge ⁠momentum. There is also something called Bollinger Bands, which gauges a stock’s variance from a moving average to assess volatility. These three gauges arrive at a mixed verdict on Alphabet. On a weekly basis, RSI is signaling the possibility of ⁠gains ​but MACD and Bollinger Bands indicate continued risk of a fall. Together, this indicates that Alphabet remains stuck in a downward trend but that it could rise in the short term.

If Alphabet falls below the $272-$275 zone, then the stock will probably extend its downtrend. However, a move above the center line near $315-$320 would tell traders it’s time to consider the possibility of ⁠further gains.

Alphabet did not immediately respond to a request for comment through its media relations portal. What the chart shows:

(Mapping the Market is a daily column written by Reuters journalists. The commentary is based on a technical analysis of financial charts, which helps assess the likelihood of future price moves but does not guarantee the outcome. ‌The column does not constitute ‌investment advice or trading recommendations. ) (Christopher Romano is a Reuters market analyst. The views expressed are his ​own. Editing by Burton Frierson and Nia Williams)