Alphabet Inc. (NASDAQ:GOOG) Set to Rally 20%
Alphabet Inc. (Nasdaq:GOOG), the tech giant formerly known as Google, is set to rally in the last half of the year. The stock has formed one of my favorite chart patterns – an ascending triangle.
But the big reason is because the ascending triangle pattern gives specific price targets once a key level has been broken. Based on the pattern’s price targets, I expect Alphabet shares to soar more than 20% in the coming months.
To find those price targets, you simply look at the height of the formation. In this case, it’s $200 from the red resistance line to the start of the green trendline. Once shares break above the red trendline, we can expect to see a rapid $200 rally for shares of Alphabet. Likewise, a break below the green trendline would send shares racing $200 in the other direction.
However, ascending triangles tend to be continuation patterns, meaning that, if the trend was up heading into the formation, the stock is expected to break out higher on most occasions.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 1,196.74.
The projected lower bound is: 1,113.85.
The projected closing price is: 1,155.30.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
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 95.1483. 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 58.70. 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 14 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 73. This is not a topping or bottoming area. The last signal was a buy 6 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 down -1.210 at 1,152.840. Volume was 53% below average (consolidating) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,125.40 1,104.66 1,065.33
Volatility: 24 24 29
Volume: 1,091,117 1,425,812 1,607,872
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 8.2% 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 0 periods.
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