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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuAlphabet (GOOGL) has been in a corrective phase since May, but it is starting to show signs of stabilization in response to oversold conditions. While long-term momentum has deteriorated, the stock remains in a secular uptrend, and short-term indicators favor a rebound from support. We view the setup as tactically constructive, with price rallying off the rising 200-day moving average (MA). The daily chart is constructive from a tactical perspective. GOOGL has rallied since flashing a counter-trend buy signal from the DeMARK Indicators® on Thursday, allowing it to reclaim important support from its 200-day moving average, near $337. The last buy signal occurred at the March low and gave way to a significant up move. The daily stochastics have a more decisive upturn now, and the daily MACD has a buy signal, increasing the likelihood of upside follow-through in the coming days. Initial resistance is defined by former peaks near $376, which is a reasonable short-term upside objective. A breakout above that level would support additional upside follow-through toward final resistance near $402. Conversely, a decisive breach of the 200-day MA would be a long-term setback and increase the risk of a deeper correction. The monthly chart shows deterioration in GOOGL’s long-term indicators, suggesting the stock may need a prolonged period of consolidation before its secular uptrend resumes in earnest. The monthly stochastics have turned lower from overbought territory, while the MACD histogram has declined, reflecting a loss of long-term upside momentum compared to earlier in the year. That said, the stock remains well above the rising monthly cloud model, which defines the secular uptrend. In our view, there is not enough technical evidence to suggest a major bearish reversal, so we expect range-bound price action to reset the secular bull trend. The relative chart conveys a similar message as the price chart. GOOGL is broadly range-bound versus the SPX, suggesting its long-term relative trend is neutral. However, the ratio has responded well to strong support defined by the March and July lows. A counter-trend buy signal from the DeMARK Indicators® supports a period of short-term outperformance versus the S & P 500 Index (SPX). GOOGL’s long-term setup argues for continued consolidation within its secular uptrend, but the short-term picture has improved. With support nearby at the 200-day MA and short-term indicators turning higher, the stock looks positioned for a rebound associated with outperformance versus the SPX. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: None. 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