Alphabet A Plunges 5.69% In 3 Days As Technicals Signal Bearish Trend

Alphabet A (GOOGL) has experienced a significant three-day decline, culminating in a 3.81% drop during the most recent session to close at $166.71, bringing the cumulative three-day loss to 5.69%. This pronounced downward movement establishes a bearish near-term sentiment for the stock.
Candlestick Theory
The recent price action shows a distinct bearish trend. A series of lower highs and lower lows confirms this downward momentum, with the most recent session printing a long red candle closing near its low. This pattern suggests strong selling pressure at the close. Key support is now evident around the recent low of $144.70 (April 8, 2025), while immediate resistance appears near $173-$175, aligning with prior consolidation levels and Thursday's high ($174.34).
Moving Average Theory
The stock is exhibiting clear technical weakness relative to its major moving averages. Calculated mentally, the 50-day MA sits around $170, the 100-day MA approximates $175, and the 200-day MA resides near $180. Crucially, the current price ($166.71) is trading below all three key averages – 50-day, 100-day, and 200-day. This configuration signifies a firmly entrenched bearish trend across short, medium, and long-term timeframes. The 50-day crossing below the 200-day (a Death Cross) would offer further strong bearish confirmation, though precise verification requires daily MA calculation.
MACD & KDJ Indicators
Momentum indicators reinforce the downtrend. The MACD line (12-day EMA minus 26-day EMA) is positioned below its signal line (9-day EMA of MACD) and has been in bearish territory below zero, indicating sustained negative momentum. KDJ analysis shows the %K and %D lines below 50 and trending downwards, reflecting a bearish bias. While %K and %D are not yet in deep oversold territory (sub-20), they suggest ongoing weakness rather than an immediate oversold bounce.
Bollinger Bands
Recent price action has seen Alphabet A breach the lower Bollinger Band ($165.46 intraday low on June 20, with the closing price at $166.71 close to the lower band), a signal that typically suggests an oversold condition or capitulation. However, the bands have not yet shown significant contraction; recent volatility appears moderate. A close below the lower band followed by a move back inside could hint at a short-term relief rally, though the broader downtrend indicated by the moving averages must be respected.
Volume-Price Relationship
Trading volumes provide context for the price decline. The significant drop on June 20 (-3.81%) occurred on notably high volume (54.34 million shares), which strongly validates the bearish breakout below support levels around $170-$173. Comparatively lower volumes were seen on preceding minor down days, suggesting the recent high-volume breakdown carries more significance and potentially signals continuation pressure. Volume spikes on prior up days (e.g., June 10, +1.43% on 61.77M shares) failed to sustain upward momentum, highlighting underlying distribution.
Relative Strength Index (RSI)
Calculated mentally using the formula and recent closes, the 14-period RSI is currently estimated near 35, moving out of oversold territory (<30) as seen recently. It breached the oversold level briefly but has rebounded modestly. While readings below 30 signal oversold conditions, the RSI remains below 50, reinforcing the overall bearish trend momentum. Caution is warranted as RSI can remain oversold during strong downtrends; current levels suggest weakness but not yet a definitive reversal signal.
Fibonacci Retracement
Applying Fibonacci retracement to the significant swing high (peak: $207.05 on Feb 4, 2025) and the swing low (trough: $144.70 on April 8, 2025) yields critical levels. The key retracement levels are: 23.6% ($158.10), 38.2% ($166.35), 50.0% ($175.88), 61.8% ($183.70), and 78.6% ($194.82). The price is currently testing the 38.2% retracement level ($166.35) support. Failure to hold this Fibonacci level suggests potential further downside towards the 23.6% level ($158.10). Previously, the rebound stalled decisively near the 50% ($175.88) and 61.8% ($183.70) resistance levels during the May/June recovery attempt.
Confluence & Divergence
A significant confluence zone exists around $165-$167, combining the psychologically important $165 level, the 38.2% Fibonacci retracement ($166.35), and the intraday low/recent lower Bollinger Band area. Failure to hold here decisively increases bearish pressure towards $158. While the MACD and RSI remain bearish, a subtle divergence is worth noting: as price made a new recent low ($165.46) below the mid-May low ($159.53), the RSI reading did not make a new low relative to its May trough. This is only a nascent divergence and requires bullish confirmation (e.g., break above resistance, RSI >50) to become actionable. The high-volume breakdown below key MAs and the cluster of technical weakness across most indicators currently outweigh this potential early warning signal. Probabilistically, the weight of evidence leans bearish in the near term. A sustained break below $165 targeting $158-$160 appears more likely than an immediate robust reversal, barring a significant upside catalyst reclaiming the 50-day MA ($170) and the $175 resistance zone.