Alphabet stock price (NASDAQ: GOOG) has shown a nice recovery in the past few days. Google shares had to take a big hit after its ChatGPT rival couldn’t meet expectations. The corresponding slump took the price 18% below its year highs. However, the price has significantly recovered since then and now attempting a breakout.
During Tuesday’s trading session, GOOG slid by 1.48% as the global equity markets turned negative. This was due to a surge in the DXY index that soared to new yearly highs. The strengthening dollar has stalled the rally in US stocks that started in 2023. Consequently, the 6-day winning streak of Google shares was broken, and the asset closed in the red.
Google Shares Prepare For A Volatile Month
Analysts are expecting a volatile price action in the US equities throughout March 2023. The CPI release on the 14 March and the FOMC meeting on the 22nd March can create massive swings. While this volatility can be ideal for day traders, it will likely keep long-term investors at bay.
A significant decrease in YoY inflation in the upcoming CPI report can give equities some relief. However, an insignificant decrease or a minor increase will prove to be very bearish for the speculative markets. Just a few days after the CPI event, the FOMC meeting will be held. This meeting will be very critical as a 50 bps rate hike may tank not only the Alphabet stock (NASDAQ: GOOG) but the whole market.
Alphabet Stock Price Attempts Key Breakout
The following GOOG chart shows that the price is attempting a breakout from the downward trendline. This also explains the pullback by Alphabet stock in its last trading session. In the current market conditions, it will be very difficult for the price to close above this line. However, a piece of positive news from Google can give bulls enough momentum to succeed.
If the price keeps getting rejected from this trendline, then I expect another retest of the $90 level in the coming days. Considering the bullish scenario, a breakout will send the price towards $102 level, which is the next major resistance for Google share price.
