Alphabet Stock Surges 8% After Court Ruling on Chrome

Alphabet Inc., the parent company of Google, saw a significant surge in its stock price following a federal court ruling that it does not need to sell its flagship product, the Chrome browser. This decision alleviated market concerns about the potential forced division of Google's business, leading to a substantial increase in Alphabet's stock value.

On Wednesday, Alphabet's stock price rose by over 8%, reaching nearly 229 USD. The stock briefly climbed to 230.86 USD shortly after the market opened, indicating a strong upward trend. This surge positions Alphabet to potentially close at a historic high, marking a 12% increase since the beginning of the year. However, this growth still lags behind other leading technology stocks, known as the "Magnificent Seven," due to concerns over antitrust issues and the impact of artificial intelligence on the industry.

Technical analysis of Alphabet's stock reveals that it has been in a "rising wedge" pattern since March. The stock recently broke through this pattern, reaching a new all-time high. This breakout suggests a continuation of the long-term upward trend. The Relative Strength Index (RSI) confirms the stock's strong momentum but also indicates a potential for short-term profit-taking if it enters an overbought zone.

Investors should pay close attention to key support levels on Alphabet's stock chart. The first critical support level is around 192 USD, which aligns with a significant high point from July of the previous year and several relevant trading ranges from January of this year. This level could provide support if the stock experiences a pullback.

If the stock price continues to decline, the next important support level to watch is around 151 USD. This area features a horizontal line connecting multiple peaks and troughs dating back to November 2021, making it a potential buying opportunity for investors.

Analyzing Alphabet's stock using the "candle chart pattern" method, which predicts future price movements based on past price data, suggests that the stock's current upward trend could continue until December of next year. This analysis is based on the stock's performance from the March 2020 low point to the November 2021 high point, which showed a similar pattern to the current trend. The stock experienced a 35% correction before the current upward movement, similar to the correction seen before the previous upward trend.

In summary, Alphabet's stock has shown strong performance following the federal court ruling, with key support levels at 192 USD and 151 USD. Technical analysis indicates a potential for continued growth, but investors should remain vigilant for signs of a pullback and be prepared to act accordingly.