Alphabet Shares in Focus after Potential Acquisition
Alphabet (GOOGL) shares will be in focus on Monday as reports suggest the Google parent company is in advanced talks to acquire cybersecurity startup Wiz for approximately $23 billion. This potential deal, if finalized, would mark Alphabet’s largest acquisition to date.
Weekly Chart Analysis
Since bouncing off the 200-week moving average early last year, Alphabet shares have been on an upward trend, with investors showing interest in buying opportunities. While the stock reached a record high mid-week, it closed lower by the end of the week, hinting at a possible retracement. Additionally, trading volumes have been decreasing, possibly signaling a slowing in buying momentum following news of potential agreements with Apple.
Key Support Levels to Watch
If a pullback occurs, investors should keep an eye on three crucial support levels. The first support area is around $175, where buying interest could emerge based on historical price movements. A drop below this level could lead to a test of $150, where the 50-week moving average and key horizontal lines may provide support. Further weakness might bring the stock down to $134, where long-term investors might see buying opportunities.
Longer-Term Price Target
Looking ahead, a longer-term price target for Alphabet shares can be projected to around $215 by analyzing past price movements. This target could face resistance if technical indicators suggest overbought conditions at the same time.
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Source : www.investopedia.com