Stock of the day: Google

Today’s stock of the day is Alphabet Inc., which is currently going through a corrective rebound, but the broader technical picture remains negative.

The key structure here is a head and shoulders pattern marked with yellow rectangles. This formation has already been activated, as the price broke below the orange neckline last week. That breakdown was decisive and came with strong bearish momentum.

This week’s rebound should be seen in that context. So far, it looks like a typical technical correction rather than a change in trend. The price is moving back toward the previously broken support, which now acts as resistance. This kind of retest is very common after a breakout.

As long as the price stays below the orange neckline, the sell signal remains valid.

For sentiment to turn positive, the market would need to reclaim key levels. Specifically, a daily close above the orange neckline and a breakout above the black downtrend line connecting the head and the right shoulder would be required. That would invalidate the bearish setup and open the door for a stronger recovery.

Until then, the current move higher looks like a temporary bounce within a broader downtrend, and the overall sentiment on Alphabet remains negative.