Using technical indicators to identify stocks fundamentally undervalued but technically strengthening is a common practice. But, using indicators to find fundamentally strong stocks that happen to be technically undervalued (or contested) is probably less common, especially if you lean toward technicals. That was certainly the case with Alphabet Inc (GOOGL), leading to Friday’s 15% spike and price gap, the sharpest rally since 2015. Alphabet’s earnings and revenue results soared past Wall Street’s expectations. But the extraordinary news was the declaration of the company’s first-ever dividend (20 cents per share) and a $70 billion buyback, providing substantial benefits to shareholders. The dividend and buyback part was unpredictable. But the case for having bought (and held) GOOGL was present in the fundamentals and technicals, notably when the technicals indicated significant weakness. FIGURE 1. DAILY CHART OF ALPHABET SINCE 2023. The Communications sector outperformed the S&P 500 consistently, while Alphabet began underperforming the…