Alphabet Inc. (NASDAQ:GOOG) earnings are still expected to be high

Alphabet Inc. (NASDAQ:GOOG) earnings are still expected to be high

Alphabet Inc. (NASDAQ:GOOG) earnings are still expected to be high

Alphabet Inc. had a difficult quarter, tackling how exactly Google would handle a multibillion-dollar European Union fine, a significant hack of its little-used Google+ social network, presidential tweets and ongoing pressure from advertising rivals.

When Alphabet GOOGL, +0.32% GOOG, +0.23% reports third-quarter earnings after the bell on Thursday, though, the search giant’s quarterly profits are expected to continue to roll in like clockwork. What remains to be seen is whether it will be able to perform better than expectations, which investors have become accustomed to and led to record highs after last quarter’s earnings.

In an October blog post the company said that it planned to essentially unbundle Android from the apps that used to arrive along with it: Google Search, the Chrome web browser and others such as Gmail. Google will continue to offer Android free and create paid licenses for its suite of apps, and separate free licenses for search and Chrome, instead of being bundled with the rest of the company’s mobile software.

The changes are set to go into effect Oct. 29 and it is not yet clear how much Google intends to charge, though one early report suggested Google could charge manufacturers $40 for installing apps such as Gmail and YouTube on their phones.

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 1,154.03.

The projected upper bound is: 1,149.55.

The projected lower bound is: 1,052.58.

The projected closing price is: 1,101.06.

Candlesticks

A white body occurred (because prices closed higher 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 22 white candles and 28 black candles for a net of 6 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with ALPHABET INC C). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) 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 47.3801. This is not an overbought or oversold reading. The last signal was a buy 6 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 40.33. 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 7 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 -66. This is not a topping or bottoming area. The last signal was a buy 5 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 11 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 2.530 at 1,103.690. Volume was 24% above average (neutral) and Bollinger Bands were 63% wider than normal.

Open High Low Close Volume___
1,080.8901,107.8901,070.0001,103.690 1,848,654

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

Moving Averages: 10-period 50-period 200-period
Close: 1,098.91 1,172.55 1,128.68
Volatility: 43 27 31
Volume: 1,922,037 1,535,016 1,680,369

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 2.2% 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 11 periods.

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