Alphabet Inc. (NASDAQ:GOOG) A streaming breakthrough

Alphabet Inc. (NASDAQ:GOOG) A streaming breakthrough

Alphabet Inc. (NASDAQ:GOOG) A streaming breakthrough

It appears the bitter rivals have agreed to cease hostilities — at least on one front. In a joint press release , Amazon and Google announced that they would “launch the official YouTube app on Amazon Fire TV devices and Fire TV Edition smart TVs, as well as the Prime Video app for streaming to Chromecast and Chromecast built-in devices. In addition, Prime Video will be broadly available across Android TV device partners, and the YouTube TV and YouTube Kids apps will also come to Fire TV later this year.”

That’s not to say that the companies have completely buried the hatchet. Customers still won’t find YouTube on Amazon’s Echo Show, the Alexa-powered device with a video screen. They also won’t be able to purchase Google electronics like the Pixel phone or Google Home Smart Speaker — which competes directly with Echo — on Amazon’s e-commerce site.

The enemy of my enemy is my friend

The easing tensions were likely born of necessity, as competition in the streaming industry intensifies.Netflix  is the undisputed leader with nearly 149 million paying customers worldwide, recently adding the most quarterly subscribers in its history. Amazon has long trailed the streaming leader, taking up a distant second place. Additionally, over the past several weeks, a couple of formidable challengers have thrown their hats into the ring.

Apple (NASDAQ: AAPL) officially entered the fray late last month when the company announced its video streaming service — Apple+ — which will debut later this year. While the announcement offered few details about the upcoming offering (we still don’t have a price or launch date), the iPhone maker teased a number of shows from high-profile creators including J.J. Abrams, Oprah Winfrey, Jennifer Aniston, Reese Witherspoon, Steven Spielberg, Steve Carell, M. Night Shyamalan, and more.

Earlier this month, Disney (NYSE: DIS) provided details about its long-awaited streaming service , Disney+. The highly anticipated service is scheduled to debut on Nov. 12 for $6.99 per month and will feature programming from across Disney’s film and television empire. Marvel, Pixar, Lucasfilm, and Disney Studios will all make contributions, as will recent acquirees Fox and National Geographic.

A slide of the contributors to Disney's streaming service.

Investor takeaway

As consumers increasingly choose direct-to-consumer services over broadcast and cable TV, this agreement becomes even more important to Amazon and Google. Since viewers couldn’t get YouTube on Amazon devices or Prime on Google products, some were likely choosing other available options that carried both, like Apple TV or Roku . Forcing customers into the arms of your competitors is almost never a good business strategy, particularly as streaming video is still in its infancy and those decisions could have long-lasting consequences.

We may yet see further olive branches between Amazon and Google, but this is a start.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 1,168.94.

The projected upper bound is: 1,285.99.

The projected lower bound is: 1,217.69.

The projected closing price is: 1,251.84.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with ALPHABET INC C), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.1635. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 71.91. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 20 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 14 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 12.470 at 1,248.840. Volume was 46% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open High Low Close Volume___
1,235.9901,249.0901,228.3101,248.840 807,334

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,219.55 1,170.98 1,136.76
Volatility: 10 19 32
Volume: 951,032 1,266,382 1,595,019

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALPHABET INC C is currently 9.9% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 34 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an overbought condition.

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