Alphabet (GOOGL) shares rose Friday after the Google parent posted quarterly results that topped Wall S🍰treet expe🍸ctations amid AI-fueled search advertising growth.

The tech giant, which also raised its quarterly dividend and upped its stock 澳洲幸运5开奖号码历史查询:buyback program, said AI integration into Google search had helped power ad growth, adding that features like AI Overview has driven user engagement. Alphabet reiterated its plans to spend 澳洲幸运5开奖号码历史查询:$75 billion in capital expenditures this year, most of whic🌌h is exp🎉ected to go toward building out the company's AI infrastructure.

Alpha🐎bet shares were up 1.8% at around $162 in late trading, as several analysts raised their price targets for the stock after the strong earnings report. Despite gains over the past week, the stock is 15% lower since the start of the year, due in part to worries over whether the company’s significant investment in AI infrastructure will pay off.

Below, we analyze the 澳洲幸运5开奖号码历史查询:technicals on Alph𒁃abet’s chart and identify crucial price levels that investors will likely be watching.

Descending Channel Breakout

Alphabet shares have trended lower within a 澳洲幸运5开奖号码历史查询:descending channel throughout most of this year, with the 澳洲幸运5开奖号码历史查询:50-day moving average (MA) recently crossing below the 200-day MA to form an ominous 澳洲幸运5开奖号码历史查询:death cross, a chart pattern that signal lower prices.

However, the stock staged a breakout above the pattern’s upper trendline ಌin Thursday’s trading session, which set the stage for today's post-earnings gain.

Meanwhile, the 澳洲幸运5开奖号码历史查询:relative strength index (RSI) flashes a neutral reading, but remains well below 澳洲幸运5开奖号码历史查询:overbought levels, providing ample room for 🥃further upside.

Let’s identify three crucial overhead areas on Alphabet’s chart where the shares may encounter overhead selling pressure and also locate a critical 澳洲幸运5开奖号码历史查询:support level worth watching during possible retracements.

Crucial Overhead Areas to Monitor

The first area to monitor sits at $168. This location on the chart may provide overhead 澳洲幸运5开奖号码历史查询:resistance near a trendline that links multiple 澳洲幸运5开奖号码历史查询:peaks and troughs on the chart extending back t🍸o꧙ late July last year.

Buying above this level could see the price climb to around $182. Alphabet shares may run into sellers in this region near last November’s 澳洲幸运5开奖号码历史查询:swing high, which closely aligns with the 澳洲幸运5开奖号码历史查询:opening price of a 澳洲幸运5开奖号码历史查询:stock gap in early December.

The next overhead area of interest lies at the $196. Investors who have bought the stock at lower prices may look for 澳洲幸运5开奖号码历史查询:profit taking opportunities in this area near the upper range of a 澳洲幸运5开奖号码历史查询:consolidation period 🌟that formed on the chart throughout most of December and January.

Critical Support Level Worth Watching

Finally, a loss of buying momentum could see a pullback to around $155. Alphabet shares would likely attract buying interest in this location near yesterday’s breakout point, an area that also roughly lines up with the early August 2024 澳洲幸运5开奖号码历史查询:swing low.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5开奖号码历史查询:warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.