Alphabet Stock Price Levels to Watch as Google Parent Weighs $23B Purchase
Alphabet (GOOGL) shares are in the spotlight after reports surfaced that the tech giant is in advanced talks to acquire cybersecurity startup Wiz for approximately $23 billion. If the deal goes through, it would mark Alphabet’s largest acquisition to date.
Weekly Reversal Amid Decreasing Trading Volumes
Alphabet shares have been on an upward trend since hitting a low around the 200-week moving average early last year. The stock recently reached a record high but closed lower for the week, signaling a potential retracement. Trading volumes have also been declining, indicating a possible slowdown in buying momentum.
Monitor These Key Levels During Retracements
If a pullback occurs, investors should keep an eye on three key support levels. The first support area is at $175, where buying interest may emerge based on previous price action. A break below this level could lead to a test of $150, where the 50-week moving average and a key horizontal line of prior highs could provide support. Further weakness may bring the stock down to $134, where a long-term trendline could attract bargain hunters.
Watch This Longer-Term Price Target
To determine a longer-term price target, analysts can use a bars pattern from Alphabet’s previous upward move and project it from the swing low. This analysis suggests a target of around $215, where the stock may face selling pressure if other technical indicators indicate overbought conditions.
Investors should closely monitor Alphabet’s stock price levels in light of the potential acquisition of Wiz. The outcome of the deal could impact the stock’s performance in the coming weeks. Stay informed and watch for key support and resistance levels to make informed investment decisions.
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