Alphabet Inc. (NASDAQ:GOOG) hold the shares for the longer term
On Monday after the bell, Alphabet (NASDAQ: GOOG, GOOGL) reported second-quarter earnings, posting 26% year-over-year sales growth and results that topped Wall Street’s expectations. Alphabet stock spiked slightly on the news, elevating the shares from around $1,205 before the report to about $1,255 in the wake of the results.
Alphabet stock represents one of my favorite kinds of investments: a bet on an established company which also has a segment that’s part of a significant mega-trend. Just as you don’t have to pick only one trillion dollar contender to make money, you don’t have to choose the “winner” of the cloud battle to profit from the certain adoption of cloud services.
Google Cloud, which includes Google Cloud Platform and G Suite, has reached meaningful scale, and I’m excited to share today that it’s already a billion dollar per quarter business … In fact, we believe that Google Cloud Platform, based on publicly reported data for the twelve months ended December 2017, is the fastest growing major public cloud provider in the world.
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 1,158.46.
The projected upper bound is: 1,286.37.
The projected lower bound is: 1,196.90.
The projected closing price is: 1,241.63.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 27 white candles and 23 black candles for a net of 4 white candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with ALPHABET INC C). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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 85.3256. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 65.66. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 102.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 13 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -29.830 at 1,238.500. Volume was 26% above average (neutral) and Bollinger Bands were 54% 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: 1,217.45 1,142.69 1,081.89
Volatility: 29 25 29
Volume: 1,919,832 1,482,068 1,637,890
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 14.5% above its 200-period moving average and is in an upward trend. Volatility is 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 13 periods.
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