Beneath Alphabet's 29% Annual Rise And The Potential Implications Of Alphabet's Highly Anticipated Q2 Earnings

• Alphabet Inc.'s shares experienced a substantial decline of 2.54%, closing over 300 points down on Monday, following an unsuccessful attempt to surpass the resistance level at $122.43.
• Despite the recent decline, Alphabet's stock has performed well, recording a 29% increase for the year.
• As Alphabet prepares to announce its highly anticipated Q2 earnings, with analysts predicting a promising increase to 1.34 from Q1's 1.17.

On Monday, Alphabet Inc Class A GOOGL experienced a substantial decline, closing over 300 points down, a decrease of 2.54%.

This decline occurred after there was an unsuccessful attempt to surpass the resistance level at $122.43, which has been a significant barrier for price since August 2022.

A fierce battle between buyers and sellers took place from May to June 2023. Ultimately, the buyers succumbed to the sellers' determination, leading to the current bearish move.

The market may experience further weakness, which could lead to Alphabet's shares possibly dropping down to around $100.

This psychological price level coincides with the daily and weekly 200 simple moving averages, and should provide strong support for investors and traders, preventing the stock from declining further.

Alphabet's highly anticipated Q2 earnings announcement is just around the corner. As we know, earnings seasons can bring about significant market fluctuations.

This upcoming release is no exception and has the potential to dramatically impact Alphabet's stock price.

Analysts predict that Q2 earnings will reach 1.34, marking a promising increase compared to the reported Q1 earnings of 1.17.

Despite recent declines, Alphabet has delivered an impressive performance for the year, experiencing a significant 29% increase.

This upward trend suggests that the recent correction may be temporary and a typical occurrence within the market cycle.

We may see another rally towards the $122.43 level if this correction is temporary. 

Investors are anxiously anticipating the Q2 earnings results to assess if the tech giant can revive its momentum or if further corrections are on the horizon.

After the closing bell on Monday, July 10, the stock closed at $127.13, trading down by 2.04%.