Google (Alphabet) stock price is set for a lower open after Russian authorities opened an administrative case against the company, alleging it warehouses private data of Russian citizens outside the country.
Like the EU, Russia has laws that mandate companies that handle user data to store such data in servers located within its borders.
The Federal Service for Supervision of Communications, Information Technology and Mass Media, otherwise known as Roskomnadzor, says that Google, Facebook and Twitter must respond to the demand of the communications regulator to localise all private data of citizens by the end of today, 1 July. Google could be fined up to 6 million roubles if it does not comply.
Already, Russian President Vladimir Putin has signed a law which mandates foreign social media giants to open local offices in Russia, as it seeks to control big tech. Google stock price closed 0.56 lower on Wednesday.
Technical Levels to Watch
The price is now testing the neckline of the rounded top pattern. A breakdown of this neckline completes the pattern and opens the door for sellers to aim for the 50% Fibonacci extension of the price swing from 25 March to 25 April at 2438.66 (29 April and 27 May high). Other targets to the downside are seen below this level at 2384.29 (30 April and 3 June lows) and at 2335.55 (27 April high and 10 May low).
On the flip side, a bounce from the neckline keeps the rounded top pattern in abeyance, allowing the high of 23 June at 2555.92 to become the initial target for a retest. New highs are formed on Google if this level is broken, allowing for 2569.48, 2600 and 2615.22 to become new targets to the north, in an uptrend resumption move.