Alphabet Stock May Rebound From Short-Term Support At $2,200
Shares in Google’s parent company, Alphabet (GOOGL), have corrected sharply in recent weeks on the back of rising bond yields and risk aversion caused by tougher health restrictions in China and fears growing recession in the United States.
The title Google could however try to rebound in the short term after returning to an important support at around $2200 on Thursday. Technical analysis puts a bullish divergence from the daily RSI into perspective, which usually precedes a rebound.
The stock could also regain some height in the short term given the extremely bearish sentiment among investors. The various sentiment surveys (NAAIM, AAII, Investors Intelligence) indicate considerable pessimism, which most often preceded a market rebound in the very short term, even during a bear market.
Alphabet (GOOGL) stock price daily chart – key levels