alphabet inc google class c goog was plunging more than 6 lower in sympathy with a number of other social mediabased and technology stocks after snap inc snap posted disappointing secondquarter earnings on thursday after the market close the bearish price action was likely accelerated when mizuho analyst james lee cut alphabets price target by 14 the move lower caused the stock to confirm alphabet is now trading in a downtrend pattern within a rising channel a downtrend occurs when a stock consistently makes a series of lower lows and lower highs on the chart the lower lows indicate the bears are in control while the intermittent lower highs indicate consolidation periods traders can use moving averages to help identify a downtrend with descending lower timeframe moving averages such as the eightday or 21day exponential moving averages indicating the stock is in a steep shorterterm downtrend descending longerterm moving averages such as the 200day simple moving average indicate a longterm downtrend a stock often signals when the lower low is in by printing a reversal candlestick such as a doji bullish engulfing or hammer candlestick likewise the lower high could be signaled when a doji gravestone or dragonfly candlestick is printed moreover the lower lows and lower highs often take place at resistance and support levels in a downtrend the trend is your friend until it’s not and there are ways for both bullish and bearish traders to participate in the stock   bearish traders who are already holding a position in a stock can feel confident the downtrend will continue unless the stock makes a higher high traders looking to take a position in a stock trading in a downtrend can usually find the safest entry on the lower high   bullish traders can enter the trade on the lower low and exit on the lower high these traders can also enter when the downtrend breaks and the stock makes a higher high indicating a reversal into an uptrend may be in the cards want direct analysis find me in the bz pro lounge click here for a free trial the alphabet goog chart alphabet confirmed a new downtrend on friday when the stock fell below the most recent higher low of 10930 which was printed on july 18 the most recent lower high was printed on july 20 at 11633   alphabet may find support at the lower ascending trendline of the rising channel which the stock began trading in on may 24 when alphabet tested the trendline on may 25 june 17 and july 5 the stock bounced up off the level   if alphabet is unable to hold the lower trendline as support a larger move to the downside could be in the cards   alphabet is trading below the eightday and 21day exponential moving averages emas with the eightday ema trending below the 21day both of which are bearish indicators the stock is also trading below the 50day simple moving average which indicates longerterm sentiment is bearish   alphabet has resistance above at 11150 and 11723 and support below at 10653 and 10108 see also heres a look at meta platforms stock after snap drags the facebook instagram parent lower