Alphabet Inc. (NASDAQ:GOOG) could soon announce a sharply higher stock buyback authorization of $12 billion to $15 billion
With Google stock trading some 13% below its all-time high heading into Monday’s fourth-quarter earnings report, the timing could be right for parent Alphabet (GOOGL) to increase its share buyback program. Google stock is trading well below a standard buy point, but there’s also a more aggressive play if shares pop on earnings.
“We believe Google could soon announce a sharply higher stock buyback authorization of $12 billion to $15 billion — up from $8.6 billion (authorized) in January 2018,” Jefferies analyst Brent Thill said in a recent report to clients.
Analysts at Canaccord Genuity and Susquehanna Financial Group also are among analysts that say Google’s share buyback plans bear watching when it reports fourth-quarter earnings after the market close on Monday.
“We remain positive on the secular ad growth story driven by mobile search and YouTube combined with generally better expense management and a more shareholder-friendly capital allocation approach,” Susquehanna analyst Shyam Patil said in his note to clients.
Google had $106 billion in cash as of Sept. 30. There’s speculation Google could acquire a big software company to boost its cloud-computing business. A large software deal could eat up a lot of cash.
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 1,090.41.
The projected upper bound is: 1,199.55.
The projected lower bound is: 1,070.56.
The projected closing price is: 1,135.06.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 24 white candles and 26 black candles for a net of 2 black candles.
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 92.6712. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 63.57. 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 76 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 173.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 buy 2 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 22.050 at 1,132.800. Volume was 40% above average (neutral) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,089.07 1,058.43 1,117.22
Volatility: 33 39 33
Volume: 1,422,430 1,799,111 1,661,660
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 is currently 1.4% 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 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 19 periods.
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