Alphabet Inc. (NASDAQ:GOOG) Buys a Way Into China

Alphabet Inc. (NASDAQ:GOOG) Buys a Way Into China

Alphabet Inc. (NASDAQ:GOOG) Buys a Way Into China

Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) invested some $550 million into Chinese e-commerce giant JD.com (NASDAQ:JD), which should allow for plenty of long-term tech investment.

While Alphabet’s (GOOGL) Google search engine and Play Store have been blocked in China for years now, Google has slowly been increasing its footprint in the world’s second-biggest economy. Google has opened up offices in the country, including an AI hub.

On June 18, Google announced it is investing as much as $550 million in Chinese e-commerce company JD.com (JD), Alibaba’s (BABA) competitor, by purchasing JD.com stock. A press release indicated that “Google and JD plan to collaborate on a range of strategic initiatives, including joint development of retail solutions.” However, the two companies plan to be working mostly outside of China.

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 1,098.99.

The projected upper bound is: 1,216.48.

The projected lower bound is: 1,125.74.

The projected closing price is: 1,171.11.

Candlesticks

A white body occurred (because prices closed higher 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 30 white candles and 20 black candles for a net of 10 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 91.5056. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 69.31. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 138.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 12 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -5.400 at 1,168.060. Volume was 10% below average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
1,158.5001,171.2701,154.0101,168.060 1,621,018

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

Moving Averages: 10-period 50-period 200-period
Close: 1,143.16 1,080.17 1,051.01
Volatility: 17 27 28
Volume: 1,451,489 1,636,507 1,614,835

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 11.1% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into GOOG.O (mildly bullish). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 30 periods.

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