Alphabet Inc. (NASDAQ:GOOG) rallies despite appearance of bearish ‘death cross’ pattern
Shares of Google-parent Alphabet Inc. GOOGL, +1.48% rose 1.2% in morning trading Wednesday, despite the appearance of a “death cross” chart pattern that suggests a bearish technical outlook. A death cross is when the 50-day moving average (DMA), a widely followed short-term trend tracker, crosses below the 200-DMA, a dividing line between long-term uptrends and downtrends.
Many chart watchers believes a death cross marks the spot a pullback graduates to a downtrend. On Wednesday, the 50-DMA fell to $1,122.52 from $1,125.70 while the 200-DMA slipped to $1,124.56 from $1,124.83. The death cross erases the bullish “golden cross” that appeared on March 29, which was a month before the stock closed at a record $1,296.20.
Alphabet’s stock was the only one of the “FAANG” stocks–Facebook Inc. FB, +0.08% Apple Inc. AAPL, +0.06% Amazon.com Inc. AMZN, +0.12% and Netflix Inc. NFLX, -0.05% –to have produced a death cross. Alphabet shares have lost 5.7% over the past three months, while the other FAANG stocks have all gained over the same time and the Dow Jones Industrial Average DJIA, +0.29% has tacked on 2.9%.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 1,203.22.
The projected lower bound is: 1,071.85.
The projected closing price is: 1,137.54.
A white body occurred (because prices closed higher than they opened).
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 25 white candles and 25 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more 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 75.9576. 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 59.90. 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 22 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 19 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 15.650 at 1,140.480. Volume was 19% below average (neutral) and Bollinger Bands were 35% 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: 1,108.07 1,119.43 1,117.60
Volatility: 17 36 35
Volume: 1,274,188 1,637,254 1,655,354
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALPHABET INC C is currently 2.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 13 periods.