Alphabet Inc. (NASDAQ:GOOG) remains in a bull market

Alphabet Inc. (NASDAQ:GOOG) remains in a bull market

Alphabet Inc. (NASDAQ:GOOG) remains in a bull market

Despite the fact that Alphabet has pulled back 10% from its highs, no real technical damage has been whatsoever. The stock has pulled back in a controlled manner to a couple percent above its 200-day moving average, and the bull market in the stock remains completely in tact. The company is expecting to see 20% annual earnings growth for 2019, and revenue growth remains strong. I see absolutely no reason to lose any sleep over this pullback and believe this correction is just helping to shake weak hands out of the stock. I remain long Alphabet from an average cost of $875.29 and plan to stay with my position as long as the $1,080.00 level is defended on a weekly close.

Alphabet has clearly under-performed both the market and its FAANG peers over the past several weeks, but this pullback has not been a negative development for the bigger picture. Those trading on hourly charts or short-term time-frames may be pulling their hair out as Google has pulled back 10% from its highs, but the big picture remains completely in tact. As we can see from the below monthly chart, this pullback has just built a handle on the cup base the stock built up since the beginning of 2018. The stock is thus far finding support at the top of this cup base, and remains above all of its key weekly moving averages. Unlike Facebook (FB) which remains below the majority of its key weekly moving averages, Alphabet is pulling back to them and seeing buyers come in. This is why it’s important to note that all corrections are not equal and why looking at the big picture is so essential.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 1,236.81.

The projected lower bound is: 1,152.42.

The projected closing price is: 1,194.62.

Candlesticks

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 21 white candles and 29 black candles for a net of 8 black candles.

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 80.5426. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 52.64. 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 43 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 191.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 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 14.150 at 1,194.640. Volume was 13% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
1,186.7301,202.1001,183.6301,194.640 1,260,754

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

Moving Averages: 10-period 50-period 200-period
Close: 1,174.70 1,207.41 1,122.58
Volatility: 20 22 29
Volume: 1,524,830 1,498,726 1,638,013

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 6.4% above its 200-period moving average and is in an downward 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 bearish on GOOG.O and have had this outlook for the last 25 periods.

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