Alphabet Inc. (NASDAQ:GOOG) data privacy concerns weigh on the shares
Shares of Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of Google, continue to struggle. Despite Alphabet’s robust earnings and revenue growth, investors have sold GOOG stock as competition and data privacy concerns weigh on the shares.
In the long run, growing profits and falling multiples will revive GOOG. However, unless a new, positive catalyst emerges for GOOG, Alphabet stock will probably continue to decline in the near-term.
Still, investors must put GDPR into perspective. The rule could actually end up helping Google and Alphabet stock, since the high costs of complying with it will prevent many small companies from competing with GOOG.
Moreover, the issues facing GOOG don’t threaten its viability, and most large companies deal with these types of problems at some point. Consequently, most of the selling of Alphabet stock appears to be driven by unwarranted fears.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 1,124.37.
The projected lower bound is: 994.47.
The projected closing price is: 1,059.42.
A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 52.0449. This is not an overbought or oversold reading. The last signal was a buy 1 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 46.13. 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 25 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 7. This is not a topping or bottoming area. The last signal was a buy 8 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 8 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -3.220 at 1,061.490. Volume was 1% below average (neutral) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,058.24 1,117.65 1,121.07
Volatility: 34 38 33
Volume: 1,661,019 1,802,167 1,721,673
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 5.3% 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 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 29 periods.
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