Alphabet Inc. (GOOGL) shares have experienced a significant decline, falling below the $150 mark for the first time since late March. The ongoing legal battle with the U.S. Department of Justice (DOJ) has been a major catalyst for this downward pressure.
The DOJ alleges that Google has abused its dominant position in the digital advertising market, stifling competition and forcing advertisers and publishers to use Google’s services. While Google maintains its innocence, the legal proceedings could have a substantial impact on the company’s stock price.
A technical analysis of GOOGL shares reveals a bearish outlook. The price has broken below the lower boundary of an upward channel and entered oversold territory. Short-term price movement has also formed a downward channel, indicating further bearish pressure.
However, potential support levels around $150 and $146 could offer some respite. The lower boundary of the red channel is another potential support level.
The outcome of the legal battle will be a crucial factor in determining the future trajectory of GOOGL shares. A favorable resolution could provide a boost to the stock price, while a negative outcome could exacerbate downward pressure.
FXOpen offers spreads from 0.0 pips and commissions from $1.50 per lot. Enjoy trading on MT4, MT5, TickTrader or TradingView trading platforms!
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
