Alphabet Stock Is Extremely Overbought: Is A Google Pullback Coming?

Core Viewpoint - Alphabet, Inc. (NASDAQ:GOOGL) stock is experiencing a strong technical warning sign with the relative strength index (RSI) exceeding 79, indicating an overbought condition, yet the stock's rise is supported by strong fundamental catalysts [1][4]. Technical Analysis - The RSI above 79 suggests that the stock price has increased too rapidly, indicating a probable short-term pullback or consolidation as traders take profits [2][4]. - A definitive pullback signal would occur if the RSI crosses back below the 70 level, indicating a potential end to the current euphoria [4][5]. Fundamental Drivers - Recent momentum in Alphabet's stock is driven by the launch of Gemini 3, Google's advanced AI model, which is seen as having a competitive edge over OpenAI's ChatGPT [3]. - Additional support for the stock comes from reports of a multi-billion dollar deal to rent custom tensor processing units (TPUs) to Meta Platforms, Inc. (NASDAQ:META) and a stake disclosed by Warren Buffett's Berkshire Hathaway [3]. Market Sentiment - Despite the technical indicators suggesting a cooling-off period, the strong fundamentals may allow Alphabet's stock to remain in an overbought state for an extended duration [4][5]. - Investors are advised to monitor both the price action and the RSI crossover at the 70 level for indications of a potential pullback [5].