Alphabet GOOG C has 7% lower below the 100 daily Moving Average and testing the Gap area 127.85 – 125.70. A key support for Alphabet C.
A close of the gap i.e., a close below 125.70 could send Alphabet in a sell-off down to next big gap at 115.80.
That bearish scenario will be likely if RSI is closing below 40 threshold thus showing negative sentiment.
For Alphabet to avoid the bearish outcome a close above 127.85 and RSI above 40 are needed. To reverse to bullish trend a close of the gap created today i.e., a close above 136.23 is needed.
Medium-term Alphabet is breaking bearish out the its rising channel pattern. RSI divergence on the weekly chart has been seen for several weeks indicating weakening of the uptrend.
No strong support until around 116 area.