Alphabet Inc. (NASDAQ:GOOG) hit with a $1.7 billion antitrust fine for harming competition in online advertising

Alphabet Inc. (NASDAQ:GOOG) hit with a $1.7 billion antitrust fine for harming competition in online advertising

Alphabet Inc. (NASDAQ:GOOG) hit with a $1.7 billion antitrust fine for harming competition in online advertising

The European Union on Wednesday hit Google-parent Alphabet (GOOGL) with a $1.7 billion antitrust fine for harming competition in online advertising, marking the third penalty issued against the internet giant by the EU. Google stock climbed despite the latest EU action.

The $1.7 billion fine follows two earlier antitrust fines of $5 billion and $2.4 billion levied by Europe’s regulators. In total, the EU has fined cash-rich Google around $9.3 billion.

Shares in Google rose 2% to close at 1,226.43 on the stock market today. Google stock has gained 17% in 2019 and about 12% from a year ago.

“Google has cemented its dominance in online search (advertising) and shielded itself from competitive pressure by imposing anti-competitive contractual restrictions on third-party websites,” EU Competition Commissioner Margrethe Vestager said in a written statement. “This is illegal under EU antitrust rules.”

Google Has Nearly $102 Billion In Cash

In other probes, the EU charged Google has used its Android mobile phone operating system to bully smartphone makers and skewed search results to benefit its own shopping search service vs. those of rivals.

The third fine on advertising practices had been expected. Google had nearly $102 billion in cash on its balance sheet as of Dec. 31.

The U.S. Federal Trade Commission in 2013 ended a Google probe after the internet search giant agreed to voluntarily change its business practices.

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 1,132.86.

The projected upper bound is: 1,271.20.

The projected lower bound is: 1,182.96.

The projected closing price is: 1,227.08.

Candlesticks

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 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 77.3404. This is not an overbought or oversold reading. The last signal was a sell 2 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 74.98. This is where it usually tops. 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 4 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 133.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 buy 13 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 25.120 at 1,223.970. Volume was 33% above average (neutral) and Bollinger Bands were 45% wider than normal.

Open High Low Close Volume___
1,197.3501,227.1401,196.1701,223.970 2,227,786

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1,182.50 1,118.42 1,129.02
Volatility: 24 25 32
Volume: 1,622,117 1,477,197 1,630,583

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 8.4% 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 12 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an overbought condition.

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