Technology stocks, including Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), rebounded in 2023 as inflation showed signs of moderation. GOOGL stock has gained about 20% year-to-date, performing roughly in line with the NASDAQ 100 Index (NDX). While GOOGL stock has appreciated, its technical indicators confirm a bullish trend, signaling additional gains from current levels.
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According to TipRanks’ easy-to-understand technical analysis tool, GOOGL stock is in an uptrend. Its 50-Day EMA (exponential moving average) is 102.52, while its price is $105.57, implying a bullish signal. Furthermore, its shorter-duration EMA (20 days) also signals an uptrend.
Thanks to the recent recovery in GOOGL’s share price, its RSI (Relative Strength Index) increased to 53.22. However, the RSI still doesn’t signal an overbought condition. While Alphabet stock is in an uptrend, the stock continues to face immediate resistance near $109.15. A breakout in the shares of Alphabet from this level could signal a strong uptrend. GOOGL stock has a swing high near $122.43, which could offer further resistance. (See the graph below.)
What’s the Prediction for GOOGL Stock?
Overall, GOOGL is a Buy based on our summary signals (which combine the moving averages and the technical indicators to provide a summarized signal).
Despite short-term macro headwinds, GOOGL is well-positioned to benefit from reacceleration in advertising and cloud spending.
Highlighting Alphabet’s stable revenue trends and improving margins, Goldman Sachs analyst Eric Sheridan reiterated his Buy recommendation on GOOGL stock after Q1 earnings on April 26.
Sheridan believes digital advertising growth, cloud ramp-up, improving profitability, and the company’s focus on enhancing shareholder returns will drive GOOGL stock higher in the long term. The analyst sees “Alphabet as the leading collection of AI/machine learning-driven businesses” in Goldman’s coverage universe.
GOOGL stock has received 31 unanimous Buy recommendations for a Strong Buy consensus rating. Further, analysts’ average price target of $129.03 implies 22.22% upside potential.
