Alphabet Inc. (NASDAQ:GOOG) parent Alphabet’s stock jumps toward record high
Shares of Google-parent Alphabet Inc. GOOG, +2.47% GOOGL, +2.67% jumped 2.1% toward a record high in afternoon trading Monday, after Pivotal Research analyst Michael Levine turned bullish for the first time in nearly three years, saying the recent change in management offers “the most optionality for margin expansion for the stock” he has seen in years.
Levine raised his rating to buy, after being at hold since April 2017, and raised his stock price target to $1,650 from $1,445. In December, the company named Google chief executive Sundar Pichai as CEO of the parent company, as co-founders Larry Page and Sergey Brin exited active management of Alphabet.
Among reasons to be bullish, Levine said he’s “incrementally more constructive about what we perceive as multiple ways to get paid” under the recently anointed Pichai regime. He believes there is a potential to change capital allocation strategies from instituting a larger stock buyback program and potentially instituting a dividend. The stock has rallied 14.8% over the past three months, while the S&P 500 SPX, +0.35% has gained 9.6%.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,433.68.
The projected lower bound is: 1,360.14.
The projected closing price is: 1,396.91.
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 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 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 90.0590. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 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 68.89. 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 12 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 266.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 2 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 0 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 33.550 at 1,394.210. Volume was 34% above average (neutral) and Bollinger Bands were 37% narrower 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: 1,354.97 1,319.32 1,211.22
Volatility: 23 18 29
Volume: 1,259,477 1,330,571 1,397,157
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 15.1% above its 200-period moving average and is in an upward 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 bullish on GOOG.O and have had this outlook for the last 19 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.