Alphabet Inc. (NASDAQ:GOOG) Google Antes Up e-Commerce Gamble
Regardless of how you feel about technology stocks, everyone can agree that Alphabet Inc (NASDAQ:GOOG)—formerly known as Google—is one of the greatest investment stories of our time.
The numbers don’t lie. Quick arithmetic reveals that anyone who invested $10,000 in 2004 would have more than $200,000 today. Anything over $50,000 could have made you a millionaire.
But does that mean you should invest in GOOG stock today? Or has this tech giant run out of steam?
We got some insight into this question when Google recently announced that it would be investing $550.0 million into JD.com Inc (NASDAQ:JD). (Source: “A strategic partnership with JD.com,” The Keyword, June 18, 2018.)
For those in the dark, JD.com is a Chinese version of Amazon.com, Inc. (NASDAQ:AMZN), with more than 301 million active users.
I know that Google often makes investments into promising companies, but this was different. It was not a random act. And to be entirely honest, I think it could send Google stock skyrocketing into uncharted territory.
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 1,104.41.
The projected upper bound is: 1,205.46.
The projected lower bound is: 1,115.36.
The projected closing price is: 1,160.41.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 60.3318. This is not an overbought or oversold reading. The last signal was a sell 0 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 63.68. 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 2 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 85. This is not a topping or bottoming area. The last signal was a sell 0 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 14 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -12.180 at 1,157.660. Volume was 30% below average (neutral) and Bollinger Bands were 1% wider 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: 1,149.84 1,085.69 1,053.32
Volatility: 17 27 28
Volume: 1,418,327 1,623,969 1,617,790
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 9.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 32 periods.
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