Alphabet Inc. (NASDAQ:GOOG) announcement puts future access to popular apps such as Gmail, YouTube and Chrome in doubt. Huawei founder defiant in the face of U.S. action
U.S. companies began complying Monday with a White House order to curb sales to Chinese telecom giant Huawei, sending U.S. technology stocks sharply lower and signalling what’s likely to be widespread fallout that will hurt not only one of China’s most important companies but also suppliers in the United States and consumers across the globe.
With $105 billion in global sales last year, Huawei has a vast web of customers and suppliers on nearly every continent. The company is the world’s largest provider of equipment used in 5G telecom networks, and the second largest seller of cellphones. Last week, Huawei said that it spends more than $1 out of every $7 of its annual $70 billion procurement budget buying equipment from U.S. companies.
Google said it would restrict Huawei’s access to future updates of its Android operating software, which powers many of Huawei’s phones. Other U.S. manufacturers also began suspending business dealings with the Chinese firm.
The United States views Huawei as a security risk because it believes the company has close ties to the Chinese government, which Huawei has denied. U.S. officials have said Huawei could potentially tap into and monitor sensitive U.S. communications through its network technology.
Ren Zhengfei, the founder of Huawei, said that the U.S had underestimated his company as he sought to dismiss the impact of the ban.
“The current practice of U.S. politicians underestimates our strength,” Ren said in a group interview with Chinese media Tuesday morning. Huawei had a stockpile of chips and “can’t be isolated” from the world, he said.
The 90-day extension “doesn’t mean much” and Huawei is fully prepared for the American actions, Ren said, even appearing to brag about luring workers away from U.S. companies.
“We are very grateful to the U.S. companies. They have made a lot of contributions to us,” he said in the comments, which were shared in real time by state media. “Many of our consultants are from American companies like IBM.”
Earlier, Huawei reacted to Google’s decision to stop allowing updates by saying the Chinese company had “made substantial contributions to the development and growth of Android around theworld.”
“As one of Android’s key global partners, we have worked closely with their open-source platform to develop an ecosystem that has benefited both users and the industry,” said spokesman Joe Kelly, adding that Huawei would continue to provide security updates and after-sales services to its existing smartphone and tablet products.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,199.69.
The projected lower bound is: 1,077.87.
The projected closing price is: 1,138.78.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 60.6729. This is not an overbought or oversold reading. The last signal was a buy 3 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 40.21. 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 sell 14 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 -107.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 14 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -23.450 at 1,138.850. Volume was 8% below average (neutral) and Bollinger Bands were 87% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,156.38 1,197.78 1,136.12
Volatility: 34 32 34
Volume: 1,544,127 1,505,507 1,621,735
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.
ALPHABET INC C gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALPHABET INC C is currently 0.2% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 12 periods.