Yikes, looks like Bard AI still got glitches!
Alphabet shares tanked after the chatbot demo, but could this just be a quick pullback?
Here are the support levels I'm watching.
Alphabet Inc (GOOG): 4-hour
So much for Google's ChatGPT rival!
As it turns out, the Bard AI public demo didn't go so well, as the chatbot gave an inaccurate answer when asked "What new discoveries from the James Webb Space Telescope can I tell my 9 year old about?"
In turn, this led to a sharp 7% tumble in GOOG shares after actual astronomers fact-checked the response.
But could this be a mere pullback on the freshly-forming uptrend?
Recall that the stock price formed a double bottom reversal pattern and already broke above the neckline resistance to confirm that a rally is in the works.
Shares are still hovering around the Fib retracement levels, which span the former resistance zone and are in line with the dynamic inflection points at the moving averages.
While the 100 SMA is still below the 200 SMA, the gap between the indicators has narrowed enough to hint at a possible bullish crossover. Also, Stochastic is heading lower to hint that the correction could keep going until oversold conditions are met.
If any of the Fibs hold as support, Alphabet shares could recover to the swing high and beyond. Of course this could also hinge on the company's next updates regarding their artificial intelligence developments.
Better wait for technical signals to line up also when thinking of going long!
