Alphabet Inc. (NASDAQ:GOOG) looking for an improvement in monetization metrics

Alphabet Inc. (NASDAQ:GOOG) looking for an improvement in monetization metrics

Alphabet Inc. (NASDAQ:GOOG) looking for an improvement in monetization metrics

Paid clicks on Google properties rose 58% year-on-year and 15% sequentially in the second quarter. That said, cost-per-click declined 10% sequentially and 22% year-on-year in that period.

For the third quarter I am looking for an improvement in monetization metrics. If that is not is apparent the market will likely reach the conclusion that margins in the core Google search business have already peaked.

That would paint the picture of a lumbering giant rather than a nimble tech outfit using profits from Google search to incubate future technologies such as self-driving cars.

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 1,155.57.

The projected upper bound is: 1,141.87.

The projected lower bound is: 1,044.95.

The projected closing price is: 1,093.41.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 21 white candles and 29 black candles for a net of 8 black candles.

A bullish harami occurred (where the current small white body is contained within an unusually large black body). During a downtrend (which appears to be the case with ALPHABET INC C) this pattern implies an end to the decline as the bears appear to have exhausted themselves.

During an uptrend the bullish harami pattern is bearish as the bears appear to be gaining strength as the bulls weaken.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 47.2100. This is not an overbought or oversold reading. The last signal was a buy 4 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 38.11. 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 5 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 -64. This is not a topping or bottoming area. The last signal was a buy 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 sell 9 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 8.490 at 1,096.460. Volume was 15% below average (neutral) and Bollinger Bands were 64% wider than normal.

Open High Low Close Volume___
1,093.3701,110.3601,087.7501,096.460 1,267,649

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

Moving Averages: 10-period 50-period 200-period
Close: 1,107.21 1,177.90 1,128.70
Volatility: 43 27 31
Volume: 1,909,862 1,509,884 1,675,188

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 2.9% 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 9 periods.

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