Co-Founders Larry Page and Sergey Brin are stepping down from their executive positions at Alphabet.
Page serves as CEO of Alphabet, while Brin serves as the company's president. Both will remain on the board while Sundar Pichai, the current CEO of Google, will make the transition to CEO of both Alphabet and Google.
Seeing a company’s co-founders step down may be a warning signal to some investors. For others, they may be looking for a breath of fresh air. At least for one day, the latter is playing out in Google stock with Wednesday’s rally.
You can imagine why Alphabet stock was such an intriguing pick as Real Money’s Stock of the Day.
The move thrusts the shares up toward the prior 52-week high near $1,334. The question now becomes: Can Alphabet stock push through that mark to new 52-week highs or is a correction looming around the corner?
Let’s look at the charts.
Trading Alphabet Stock
Before Wednesday’s rally, shares of Alphabet were essentially flat from the highs made in July 2018. With today’s rally, the stock reclaimed several important marks.
First, it sent Alphabet stock back over the $1,290 to $1,300 level. This area had been notable resistance for quite some time, but more recently, it has served as support.
Tuesday’s action threatened to break that price action. It also threatened to keep GOOGL below the 20-day moving average.
While neither development is necessarily catastrophic, it would apply some technical damage to the charts. Instead, though, the shares are surging back above $1,300, flirting with $1,320, a tough level for Alphabet stock.
If the stock can continue to push higher and reclaim this area, see if it can retest the $1,334 area. Above it opens the door to $1,350 and higher.
Should Alphabet stock ultimately lose its footing, see how it handles the 20-day moving average and the $1,295 to $1,300 area. Below both puts the 50-day moving average on the table. Below that and the $1,250 mark is possible.
If that type of decline ends up panning out, we’ll need to reevaluate GOOGL stock.