Alphabet Inc. (NASDAQ:GOOG) Record-Busting Fine Looms

Alphabet Inc. (NASDAQ:GOOG) Record-Busting Fine Looms

Alphabet Inc. (NASDAQ:GOOG) Record-Busting Fine Looms 

Google will learn if it faces a record fine over its Android operating system in the coming hours.

The European Commission has claimed the US tech giant’s mobile device strategy unfairly strengthened its dominance of search.

The regulator can fine the firm up to 10% of its annual revenue – which amounts to $11.1bn (£8.5bn).

It could also force Google to unbundle Android from its Chrome browser and other services.

Poor Google?

Perhaps, but Google is not feeling sorry for itself. Today, Sundar Pichai, the CEO of Google, will speak with Margrethe Vestager, the EU’s Competition Commissioner. According to Bloomberg, who cited people close to the matter, this will act as a “state of play meeting.”

Vestager is set to implement the fine, as well as order Google to stop its anti-competitive business methods.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 1,242.54.

The projected lower bound is: 1,161.08.

The projected closing price is: 1,201.81.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with ALPHABET INC C), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 86.8940. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 11 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 68.30. 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 19 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 117.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 5 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 14.940 at 1,198.800. Volume was 100% below average (consolidating) and Bollinger Bands were 2% narrower than normal.

Open High Low Close Volume___
1,172.2201,203.0401,170.6001,198.800 426

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

Moving Averages: 10-period 50-period 200-period
Close: 1,158.31 1,119.82 1,071.53
Volatility: 25 23 29
Volume: 909,922 1,349,694 1,591,942

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 11.9% 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 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 5 periods.

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