Alphabet A Rises 3.25% to $173.68 as Technicals Signal Bullish Reversal

Alphabet A (GOOGL) closed at $173.68, rising 3.25% for its third consecutive daily gain. This rally added 4.51% over the recent three sessions, demonstrating renewed bullish momentum as the stock rebounds from its 2025 low.
Candlestick Theory
Recent candlesticks reveal critical price structure developments. The June 4 session formed a hammer pattern at $166.36 (low), signaling potential reversal strength after the downtrend. This was confirmed by subsequent bullish engulfing patterns on June 5-6, with the June 6 candle closing near its high at $173.68 after testing resistance at $174.50. Key support now consolidates between $166-$168, anchored by the June 3-4 price consolidation. Resistance emerges at $174.50 (June 6 high), with stronger overhead resistance at $176.77 (May 22 high).
Moving Average Theory
The 50-day EMA at $171.40, 100-day EMA at $175.20, and 200-day EMA at $171.80 reveal a complex trend landscape. The recent close above the 50-day EMA indicates strengthening short-term momentum, but persistent trading below the 100-day EMA suggests intermediate-term bearish pressure. Crucially, the 50-day and 200-day EMAs have converged near $171.50-$172, creating a technical inflection zone. Sustained price action above this cluster would signal bullish trend rehabilitation, while failure could reactivate the downtrend.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover emerging above its signal line after a prolonged negative phase, with histogram bars transitioning to positive territory. Concurrently, KDJ parameters (%K=68, %D=57, J=90) reflect improving momentum. The %J line approaching overbought territory suggests near-term exhaustion risk, but the simultaneous MACD bullish crossover and KDJ upward trajectory indicate strengthening reversal probability, particularly when contextualized with recent volume surges.
Bollinger Bands
Price action breached the upper Bollinger Band ($172.80) on June 6, typically indicating overextended conditions. However, this break coincided with expanding band width (+15% volatility increase week-over-week) and above-average volume—characteristics of directional conviction rather than mere volatility spike. The prior multi-week consolidation within narrowing bands resolved with upside volatility, supporting continuation potential toward the $177-$180 zone (next resistance).
Volume-Price Relationship
Volume confirmation strengthens the recent advance. June 6 volume of 35.7M shares exceeded the 30-day average by 18%, validating breakout conviction. The 7% price surge from June 4-6 occurred alongside a 32% volume increase versus the preceding three sessions, demonstrating accumulation. Particularly notable is the May 22 volume spike (74.8M shares) during a failed breakout—now contrastingly, recent volume patterns suggest authentic demand absorption.
Relative Strength Index (RSI)
The 14-day RSI at 62 reflects accelerating momentum while remaining below overbought thresholds. Importantly, RSI has diverged bullishly against price since late May—making higher lows while prices tested lower—a precursor to the current reversal. Though nearing the 70 overbought demarcation, the indicator's trajectory alongside expanding volume suggests room for additional upside before technical exhaustion. This warning signal warrants monitoring if RSI sustains above 70.
Fibonacci Retracement
Applying Fibonacci to the dominant trend (September 2024 low: $147.52; February 2025 high: $207.05) reveals critical confluences. The recent $166.36 low precisely aligns with the 61.8% retracement level ($166.30), functioning as a springboard for the current rally. Current resistance converges at the 50% level ($177.30), reinforced by the May congestion zone. A decisive break above $177.30 would target the 38.2% retracement ($184.30), while failure could retest the 61.8% support. The 50-day/200-day EMA cluster at $171.50-$172 further fortifies this Fibonacci zone.
Confluence and Divergence Observations
Multiple technical elements align at $171-$173: the 50/200-day EMA convergence, Fibonacci 50% retracement support, and Bollinger Mid-Band. This confluence underpins the recent breakout. Bullish synchronicity appears in the MACD crossover, RSI divergence resolution, and volume-confirmed candlestick reversal patterns. However, KDJ's proximity to overbought territory presents a cautionary divergence against still-neutral RSI. The decisive factor remains whether Alphabet A maintains above $172 on retests—loss of this support would reactivate bearish technicals, while consolidation above $173 primes challenge of the $177-$180 resistance cluster.