Nov 9 (Reuters) - Shares in Google’s parent company, Alphabet, have been on the slide since May, losing more than 30% peak-to-trough during that time. After such a slide, they might be due for a reprieve, if only temporarily, that could lift the stock by about 10%, technical analysis indicates.
Markets rarely move in a straight line and even strong downward trends can be interrupted by short-term rallies, called corrections.
Technical analysts use charts of recent price action to map out where a stock might go in such a correction.
One thing chart watchers look for in a falling market is support, which is a level that acts as a floor for prices. Crucially for the prospects of a bounce in Alphabet, the stock appears to have found support in the $270-$275 area.
When analysts search for support, they often use previous lows, which show the market’s reluctance to push the stock below a certain level. Another source of support is percentage-based calculations of levels that markets often revisit after a big move. These are called Fibonacci retracements, and there is one at $274.57. It marks the halfway point of Alphabet’s rise from April 2025 to May this year, according to data supplied...