Alphabet Inc. (NASDAQ:GOOG) about to be hit with a new tax bill in Europe

Alphabet Inc. (NASDAQ:GOOG) about to be hit with a new tax bill in Europe

Alphabet Inc. (NASDAQ:GOOG) about to be hit with a new tax bill in Europe

Big tech companies including Facebook, Google, and Amazon are going to have start paying billions more in tax in Europe after lawmakers demand they contribute more to the public purse.

France has joined the UK in setting out plans to tax internet giants on the revenue they make locally. It says the 3% tax could initially raise about €500 million ($565 million), but this number could rise quickly.Finance minister Bruno le Maire unveiled the plan on Wednesday, which would tax digital companies with global revenues over €750 million ($848 million) and French revenue of over €25 million ($28 million).

France could become the first European country to put in place such a tax, but Britain could be close behind. In October, UK Chancellor Philip Hammond said the UK would tax 2% of British user-generated revenue in a new “Digital Services tax.”

Hammond estimated that this would bring in up to £400 million ($510 million) a year for the Treasury, starting in 2020. The British government has just concluded a consultation on the proposals.

Combined, the UK and French tax will raise just under $1.1 billion from mainly US tech firms.

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 1,104.82.

The projected upper bound is: 1,216.59.

The projected lower bound is: 1,105.07.

The projected closing price is: 1,160.83.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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 83.9358. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 15 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 65.74. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 97 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 160.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 18 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 down -4.170 at 1,157.860. Volume was 38% below average (neutral) and Bollinger Bands were 27% narrower than normal.

Open High Low Close Volume___
1,162.4901,167.5661,155.4901,157.860 1,099,289

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

Moving Averages: 10-period 50-period 200-period
Close: 1,127.65 1,088.17 1,123.81
Volatility: 17 34 32
Volume: 1,330,002 1,573,298 1,624,071

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 3.0% 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 2 periods.

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