Alphabet Inc. (NASDAQ:GOOG) concerns about global growth and conflicts over trade

Alphabet Inc. (NASDAQ:GOOG) concerns about global growth and conflicts over trade

Alphabet Inc. (NASDAQ:GOOG) concerns about global growth and conflicts over trade

The stock market took a big bite out of the FAANGs on Wednesday.

Collectively, the Big Five tech firms — Facebook, Apple, Amazon, Netflix, and Google — lost $172 billion in value over the span of a few hours on Wednesday, amid a broad slump in the market. That’s about the same amount as Toyota’s entire market capitalization — and it’s equivalent to the dollar value of the entire gross domestic product of Algeria.

In terms of value lost, Amazon was the big loser of the group. Its shares fell 6% on Wednesday, vaporizing $56 billion of its market capitalization. Apple was next; it lost nearly $51 billion on a 4.6% fall — an amount $6 billion greater than the entire value of General Motors.

But Netflix was the biggest loser on a percentage basis. It’s shares declined by 8%, shedding about $13 billion in the process.

Facebook, which has had its share of troubles recently, fell 4% and lost $15.7 billion in market value. And Google’s 4.6% slide left its market cap $36.7 billion lighter.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 1,173.06.

The projected upper bound is: 1,122.06.

The projected lower bound is: 1,034.94.

The projected closing price is: 1,078.50.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black 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. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 11.9244. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 24.71. This is where it usually bottoms. 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 52 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 -237.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 4 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -57.600 at 1,081.220. Volume was 84% above average (neutral) and Bollinger Bands were 5% wider than normal.

Open High Low Close Volume___
1,131.0801,132.1701,081.1301,081.220 2,675,742

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 1,168.10 1,196.47 1,127.36
Volatility: 34 24 30
Volume: 1,625,392 1,425,922 1,646,430

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 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 4.1% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 2 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an oversold condition.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH