Alphabet Inc. (NASDAQ:GOOG) earnings will indicate pricing going forward
The unlikeliest of the FAANG stocks — Facebook, Amazon, Apple, Netflix and Google — even got an upgrade from CFRA yesterday, after a session of volatility. Scott Kessler, CFRA analyst and director of equity research, said the firm decided to upgrade Facebook to “buy” from “hold,” because there is still growth potential there.
“We really think a lot of the bad news is in the stock,” Kessler said. “We have a lot more growth, there is a big balance sheet.”
And while Kessler says there is still upside to Facebook’s stock, the key to CFRA’s thesis is that Facebook isn’t actually a growth stock anymore.
“When you look at Facebook, the questions really aren’t around valuation at this point. It’s really more around the fundamental story, how bad is revenue deceleration and revenue compression going to be?” Kessler said. “You have a lot of people leaning, we think, in the wrong direction ahead of earnings, and that’s why we went positive.”
Rising interest rates have put pressure on equities, leading experts to speculate that rising interest rates may have created a tipping point for stocks, where the decade-long investment theme favoring growth over value is changing.
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 1,166.87.
The projected upper bound is: 1,120.01.
The projected lower bound is: 1,033.01.
The projected closing price is: 1,076.51.
A white body occurred (because prices closed higher than they opened).
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 21 white candles and 29 black candles for a net of 8 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
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 7.5156. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 8 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 24.46. 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 53 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 -194.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -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 sell 3 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -1.900 at 1,079.320. Volume was 101% above average (neutral) and Bollinger Bands were 30% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,156.57 1,193.66 1,127.47
Volatility: 32 24 30
Volume: 1,794,328 1,453,579 1,657,375
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 4.3% 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 3 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an oversold condition.
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