-- Alphabet stock could bounce from here and if it does, may be the next FAANG to make new all-time highs. If it doesn't bounce, here's must-watch support. --
Alphabet (GOOGL)(GOOG) is trading lower on Monday, down about 1.5% in what's become a mixed session.
While stocks initially ramped to all-time highs as Fed Chairman Powell was renominated by President Biden, the market has become a bit mixed since then.
Further, there has been some "crash-like action" in growth stocks.
However, Alphabet didn't make new highs on the day. It's interesting because the stock isn't doing bad, but it hasn't been the leader that it was earlier in the year.
Of course, a stock can only lead for so long before needing a rest and I think that's the case here.
Apple (AAPL) - Get Apple Inc. (AAPL) Report has been trading much better and made a push to new all-time highs.
Amazon (AMZN) almost did on Friday, while Microsoft (MSFT) and Netflix (NFLX) recently hit new highs as well.
Will Alphabet stock be the next FAANG component to do so?
After reporting strong earnings in October, Alphabet stock was able to push to new all-time highs. It jumped higher and chopped between $2,890 and $2,925 before eventually resolving higher.
While Alphabet has been the best-performing FAANG stock this year, it's had trouble garnering upside traction over the last month.
Shares are currently trading down into the 21-day moving average and short-term channel support. Further, it's retesting the prior all-time high near $2,925.
From here, bulls are looking to see if Alphabet stock can provide a decent bounce from this trifecta. If it can, we'll have to see if the stock can reclaim the 10-day moving average, then $3,000.
Above $3,000 and the all-time high is in play at $3,019, along with uptrend resistance. A breakout over all of these marks could put $3,100 to $3,115 in play.
I like the way this strong performer has been consolidating and tip-toeing higher.
However, if it can't push higher, bulls need to be on alert for a pullback.
If that's the case, there's a small chance that $2,890 buoys the stock, but what are the odds of that if all of the current support measures fail?
It's possible, but in the case where Alphabet stock breaks $2,900, I will instead have my focus on uptrend support and the 50-day moving average. This area comes into play in the $2,725 to $2,750 area.
If it holds, let's look for a bounce up through the $2,925 area.