As the chart of Alphabet (GOOGL) shares shows, the price in August exceeded the February high. For the first time in history, the close price moved above $210.

The positive market sentiment is being driven by the development of AI technologies, as well as Alphabet’s (GOOGL) ambition to maintain a leading position in this field. Among the latest news, it is worth noting that Meta Platforms (META) has signed an agreement to use Google Cloud’s infrastructure for its AI projects, which is expected to bring Alphabet around $10 billion in revenue.

Technical Analysis of GOOGL Shares

In the long-term context, price fluctuations are forming an ascending channel (shown in blue). After falling to the lower boundary in early April (when Trump first announced his tariffs), the balance of sentiment shifted, and the price has since been moving within a new medium-term ascending channel (shown in purple), approaching the upper boundary of the blue channel.

At the same time, we can make the following observations, which generally point to a bullish market:
→ the price has confidently broken above the median line of the long-term channel;
→ the price has consolidated above the psychological level of $200, which acted as resistance at the start of the year;
→ this summer, the price has been trading near the upper boundary of the medium-term channel, highlighting strong demand – short-term declines towards the median line of the medium-term channel have quickly attracted buyers;
→ in August, the $205.75 level switched its role from resistance to support.

From a bearish perspective, the RSI indicator is showing signs of divergence, suggesting that the rally may be running out of steam. However, it seems that more significant drivers would be needed to shift the current positive sentiment:

→ Technically, Alphabet’s (GOOGL) share price reaching the upper boundary (which looks realistic given the bullish factors listed) could motivate buyers to take profits.

→ Major economic news, such as a change in the Federal Reserve’s interest rate policy.

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