Google’s summer trading in stock markets has been lacklustre compared to its spring rocket rally to a more-than-a-year high of 129.46.

The stock has been swinging to the downside for more than a month now, but the support trendline from March has been protecting the market from a bearish trend reversal. The price bounced on the line last week, with the 23.6% Fibonacci retracement of the 83.27-129.46 upleg cementing that floor at 118.55. That said, buying interest remains muted according to the technical indicators as the RSI keeps fluctuating around its 50 neutral mark and the MACD is directionless around its zero and signal lines.

Nevertheless, the close above the 20-day simple moving average (SMA) could still motivate some buying towards the channel’s upper boundary at 126.50. If the price exits the bearish formation on the upside, it may face some pressure somewhere between its previous high of 129.46 and the 131.00 barrier. The 134.00 area could next attract attention.

In the event the price slips below the 23.6% Fibonacci of 118.55, the decline could last till the channel’s lower boundary seen around 115.25. If the bears strengthen the negative trajectory below the latter, the 38.2% Fibonacci mark of 111.80 could come to the rescue, preventing a forceful downfall towards the 50% Fibonacci of 106.35 and the 200-day simple moving average (SMA).

Summing up, Google’s stock is within a caution area and only a durable bounce above the bearish channel and the 126.50 level could resume hopes of a bullish continuation. Note that its parent company Alphabet is reporting earnings for the second quarter today after the market close.