Key Technicals to Watch as Google Stock Plunges Amid DOJ's Call for Chrome Divestiture

$Alphabet(GOOGL)$ stock hit sharply following the DOJ's proposal to divest its Chrome browser, alleging anti-competitive practices.

GOOGL Share Price Plunges 7%: Key Technical Insights

In this article, I’ll revisit some key technical observations for GOOGL stock:

1. Support at $150: The previous all-time high of $150, tested and rebounded in September 2024, remains a valid support level.

2. Near-Term Support at $161: Between September and October 2024, the stock spent around 36 days trading near $161, establishing it as a significant near-term support level.

3. Resistance at $190: The all-time high of $190 is a clear and visible resistance level.

4. Volume Insights: Last night's drop, triggered by the DOJ news, saw sell volume more than double the previous day’s volume, indicating strong selling pressure. However, on a week-to-week basis, the sell volume wasn’t significantly higher, suggesting the reaction may not have broad momentum.

Note on volume:

The spike in sell volume following the DOJ news indicates strong immediate selling pressure and negative sentiment. However, the lack of significantly higher volume on a week-to-week basis suggests the reaction may not have broad or sustained follow-through. This could imply a short-term overreaction rather than a prolonged downtrend, unless further negative catalysts emerge.

Googl volume chart

Short-term trading on US stock DLCs during Asia market hours:

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