Alphabet Inc. (NASDAQ:GOOG) stock down amid concerns that the Justice Department may launch an investigation into potential antitrust violations
Shares of Google parent Alphabet Inc. tumbled Monday, enough to push them briefly into bear market territory, before bouncing back out just before the close.
The stock was down as much as 7.2% at an intraday low of $1,027.03, amid concerns that the Justice Department may launch an investigation into potential antitrust violations. At that price, the stock was 20.8% below its April 29 record close of $1,296.20. The stock pared some losses to close down 6.1% at $1,038.74, or 19.9% below its record close.
Many on Wall Street define a bear market as a decline of 20% or more from a bull-market peak. A close at or below $1,036.96 would make the bear market official.
Barclays analyst Ross Sandler said regulatory concerns for Google come at a “troubling time,” as fundamentals are eroding along with the rest of the internet sector.
Sandler said Google has few allies left in Washington, after aligning with Democratic party candidates who didn’t get elected. While he believes any inquiry would be “long and painful,” he doubts it will result in a break-up of the company. That means at some point, the investment community will at some point turn its focus back to fundamentals.
“Point being that fundamentals matter during these investigations, unfortunately, [Google’s] are not as strong as they once were,” Sandler wrote.
Nevertheless, he reiterated his overweight rating and $1,315 stock price target.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 1,159.35.
The projected upper bound is: 1,113.95.
The projected lower bound is: 986.06.
The projected closing price is: 1,050.00.
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 28 white candles and 22 black candles for a net of 6 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 15.1474. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 13 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 29.61. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 24 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 -181.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 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 sell 24 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 16.820 at 1,053.050. Volume was 100% below average (consolidating) and Bollinger Bands were 38% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,113.68 1,180.99 1,130.10
Volatility: 39 35 35
Volume: 1,488,108 1,467,921 1,632,642
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 6.8% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of GOOG.O (mildly bearish). Our trend forecasting oscillators are currently bearish on GOOG.O and have had this outlook for the last 22 periods. Our momentum oscillator is currently indicating that GOOG.O is currently in an oversold condition.
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