Internet content giant and Google parent company Alphabet Inc. (GOOGL) had a volatile ride in the first quarter of 2018. The stock set its all-time intraday high of $1,198.00 on Jan. 29, then gapped lower following a negative reaction to earnings released after the closing bell on Thursday, Feb. 1. Back then, Alphabet was a strong momentum stock and was showing characteristics of an "inflating parabolic bubble" on its weekly chart.

The parabolic bubble popped, and on Feb. 9, the stock tested its 200-day simple moving average of $1,003.38, down 16% from the high and into correction territory. Shares of Alphabet rallied from the 200-day simple moving average and traded as high as $1,178.16 on March 12, up 17%. This rally "filled the price gap" to the Feb. 1 low of $1,169.36. (See also: Alphabet's Stock Price May See a Sharp Rebound.)

The overall technology bubble popped as the Nasdaq Composite set its all-time intraday high of 7,637.27 on March 13. This day turned out to be a daily "key reversal" as the Nasdaq closed March 13 below the March 12 low.

Alphabet stock joined the tech correction, declining below its 200-day simple moving average and setting a new 2018 low of $984.00 on March 28, down 16% once again. This was a trading opportunity to buy the stock at my semiannual value level of $987.07. Alphabet shares closed March at $1,037.14, down 1.5% year to date and in correction territory at 13.4% below the all-time high of $1,198.00 set on Jan. 29. The stock is 5.4% above its March 28 low.  

In recent company news, Alphabet's self-driving car unit Waymo recently announced a deal with Jaguar Land Rover to expand its autonomous ride-hailing program. The company is also commercializing its artificial intelligence DeepMind business four years after acquiring this business unit. (For more, see: How Artificial Intelligence Will Boost These 8 Stocks.)

The daily chart for Alphabet

Daily technical chart showing the performance of Alphabet Inc. (GOOGL) stock
Courtesy of MetaStock Xenith

The horizontal lines in the middle of the chart show my semiannual and annual value levels of $987.07 and $966.02, respectively. My new quarterly and monthly risky levels are $1,054.64 and $1,146.05, respectively.

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The weekly chart for Alphabet

Weekly technical chart showing the performance of Alphabet Inc. (GOOGL) stock
Courtesy of MetaStock Xenith

The weekly chart for Alphabet is negative, with the stock below its five-week modified moving average of $1,085.96. The 12 x 3 x 3 weekly slow stochastic reading ended March declining to 51.49, down from 59.24 on March 23.

Given these charts and analysis, investors should buy Alphabet shares on weakness to my semiannual and annual value levels of $987.07 and $966.02, respectively, and should reduce holdings on strength to my quarterly and monthly risky levels of $1,054.64 and $1,146.05, respectively. (For additional reading, check out: GOOGL, FB Overdue for Govt. Oversight: Jim Mellon.)