Alphabet stock up 8.5% in May as bullish momentum builds into month-end

Alphabet share price is trading near $172.2 in Friday’s premarket session, edging up from Thursday’s close of $171.8. This follows a turbulent two-day stretch in which price action was shaped by both bearish technical patterns and market reactions to the Fed’s latest tone on inflation and interest rates.

• Alphabet stock holds firm above $170.6 key support after Thursday's intraday pullback.
• Bullish RSI and Golden Cross support May rally toward $175.23.
• GOOGL is up 8.5% in May as buyers eye breakout above recent highs.

Wednesday set the tone early in the week. GOOGL stock formed a bearish hammer candlestick pattern, often interpreted as a sign of potential reversal or hesitation after an extended move. The following day, Thursday, opened on a strong note at $174.4, a clear gap up from Wednesday’s low of $172.3. This gap was driven by positive sentiment following the Fed's commentary suggesting that elevated inflation levels would delay any rate cuts. Investors initially interpreted this as a favourable stance for tech stocks.

GOOGL stock price dynamics (March - May 2025)

However, the bullish reaction faded as the trading session unfolded on Thursday. Despite the strong open, GOOGL fell nearly 2% intraday to a low of $170.6, breaking below both Wednesday’s low and invalidating the earlier optimism. Still, the stock managed to bounce from that low and closed at $171.8, hinting at dip-buying activity and preserving a short-term support base.

Alphabet stock EMA golden cross and RSI confirm longer-term bullish bias

Friday’s premarket bounce confirms that buyers are attempting to build on that late-Thursday recovery. The RSI indicators on both the 1-hour and daily charts are still in bullish territory, showing no signs of divergence. This signals that momentum remains constructive even as price volatility increases.

Adding to the bullish technical structure is a recent golden cross, where the 50 EMA has crossed above the 100 EMA on the 1-hour chart. This moving average alignment reinforces a longer-term bullish bias, especially while prices continue to hold above the recent swing low at $170.6.

As of now, GOOGL is up 1.2% for the week and has posted an 8.5% gain in May, its strongest monthly performance since January. Near-term, the key upside levels are Wednesday’s high at $175.23 and last week’s high at $176.7. A move above these levels would signal renewed strength and continuation of the broader uptrend. Overall, the current support at $170.6 and bullish RSI backdrop are likely to keep upward pressure intact as traders watch for a potential breakout before the May close.

Alphabet stock traded above $173.50 as a golden cross formed while RSI hovered near 63. Investors positioned for further gains ahead of the Fed’s 2025 rate outlook.