Home Headline News Alphabet Inc. (NASDAQ:GOOG) could lose around $150-$200 million for the Huawei ban

Alphabet Inc. (NASDAQ:GOOG) could lose around $150-$200 million for the Huawei ban

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FILE- In this Feb. 14, 2018, file photo the logo for Alphabet appears on a screen at the Nasdaq MarketSite in New York. Alphabet Inc. reports earnings Monday, April 23, 2018. (AP Photo/Richard Drew, File)

Alphabet Inc. (NASDAQ:GOOG) could lose around $150-$200 million for the Huawei ban

Alphabet Inc (NASDAQ:GOOG) was in the news for it shutting Huawei out from Android after a 90 day license is up. Alphabet had to shut Huawei out of Android because the Trump administration placed the Chinese company on a tech blacklist that prevented american companies from doing business with it. Some analysts believe Alphabet could lose around $150-$200 million for the ban.

Nomura Instinet believes the number in the worst case could be $375-$425 million annually. Given Alphabet reported revenue of around $130 billion last year, the amount isn’t a big deal. Of the around 700-740 elite funds we track, 141 funds owned $12.83 billion of Alphabet Inc (NASDAQ:GOOG) on December 31, versus 130 funds and $13.71 billion respectively on September 30.

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 1,183.38.

The projected upper bound is: 1,191.46.

The projected lower bound is: 1,073.39.

The projected closing price is: 1,132.43.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with ALPHABET INC C), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) 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 26.1207. This is not an overbought or oversold reading. The last signal was a buy 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 39.80. 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 18 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 -71. This is not a topping or bottoming area. The last signal was a buy 3 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 18 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -7.300 at 1,133.470. Volume was 24% below average (neutral) and Bollinger Bands were 26% wider than normal.

Open High Low Close Volume___
1,147.3601,149.7651,131.6601,133.470 1,112,341

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

Moving Averages: 10-period 50-period 200-period
Close: 1,147.21 1,194.33 1,134.41
Volatility: 35 31 34
Volume: 1,446,651 1,466,419 1,617,684

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 0.1% below 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 moderate flows of volume out of GOOG.O (mildly bearish). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 16 periods.

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