Tradingkey - On August 5, Eastern Time, Alphabet ( GOOGL) ( GOOG) announced a major leadership reshuffle for its artificial intelligence division.

Jeff Dean, one of the company's earliest employees and a core figure responsible for designing the company's artificial intelligence strategy over the past 15 years, will leave the company to found Discovery Loop, an artificial intelligence startup focused on the field of scientific discovery.

It is reported that Google veterans Oriol Vinyals, Quoc Le, and Sanjay Ghemawat will also join Dean in co-founding the startup. The departure of these talents, including Dean, from Google further exacerbates the company's recent trend of AI talent drain.

Meanwhile, Demis Hassabis, co-founder and current head of DeepMind, will step down from day-to-day management responsibilities to become the laboratory's chairman.

Affected by this, Google's stock fell more than 5% intraday, with the decline narrowing to around 4.33% as of press time. The market is beginning to worry about the stability of Google's core team and subsequent leadership arrangements amid intensifying AI competition.

Hassabis said he believes now is the right time to hand over day-to-day operational responsibilities to focus more energy on the general direction of AI development and help shape the next stage of the technological path. Taking over part of Hassabis's responsibilities is Koray Kavukcuoglu, Google's chief AI architect, who will report directly to Alphabet CEO Sundar Pichai.

Google 4-hour stock price chart, Source: TradingView

After hitting a periodic high of $384.47, Google experienced a rapid pullback, dipping as low as $356.82 intraday before finding support at the 0.382 Fibonacci retracement level ($357.89). This indicates that selling pressure has eased somewhat. However, if it cannot reclaim the 0.236 retracement level ($368) as soon as possible, the current trend remains biased toward a technical rebound after a high-level pullback.

Currently, the primary support below is at $357.89, which is the 0.382 Fibonacci retracement level. If it can hold steady, the stock price is expected to continue its rebound toward $368.05; further resistance upside is seen around $375 and the previous high of $384.47.

If $357.89 is lost, the support levels below are seen sequentially at the 0.5 retracement level of $348.69, the 0.618 retracement level of $341.48, and the 0.786 retracement level of $329.79. The $351.96–$354.20 range, where short- and medium-term moving averages are densely clustered, should also be regarded as an important buffer zone during the correction process.

It should be noted that only by firmly reclaiming $368.05 and gradually overcoming the resistance around $375 can it be more strongly confirmed that this sharp drop is a normal pullback within an upward trend, rather than the continuation of a high-level reversal.

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