Alphabet Inc. (NASDAQ:GOOG) Surprises lurk in Trump’s China tariff list

Alphabet Inc. (NASDAQ:GOOG) Surprises lurk in Trump’s China tariff list

Alphabet Inc. (NASDAQ:GOOG) Surprises lurk in Trump’s China tariff list

  • Nest thermostat set to be caught in U.S.-China trade war
  • Music equipment and vaping devices also on target list
  • U.S. moves aim to hit intermediate goods, spare direct rises
  • Almost all consumers will be affected if tariffs escalate

U.S. President Donald Trump’s tariffs on Chinese imports mostly shield consumers by targeting supply-chain components – but lurking inside the tariff lists are some surprises, from Google Nest thermostats to vaping devices to equipment used by aspiring rock stars.

In an escalating tit-fot-tat trade war, the United States has threatened to impose duties on up to $450 billion of Chinese imports, with the first $34 billion portion set to go into effect next month.

The first round of tariffs seeks to avoid consumer end products, suggesting a carefully crafted strategy to avoid a direct tax on voters.

Under the categories developed by the Organisation for Economic Cooperation and Development (OECD), the most comprehensive database for determining the uses of goods traded between two countries, most of the targeted products are classified as either “capital goods” or “intermediate items.”

The idea is to force companies to shift their supply chains away from China or boost efficiencies to make up any cost differences. But ultimately, that would still hurt U.S. consumers, industry leaders say.

The industry classifications throw up some perhaps unexpected groupings, indicating what economists say is the arbitrary impact of tariffs.

For instance, the Nest thermostat, assembled in China and sold in the United States by Alphabet Inc’s GOOGL.O Google for around $250, is classified in the “capital goods category” of imports and will be subject to the tariffs.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 1,105.98.

The projected upper bound is: 1,173.68.

The projected lower bound is: 1,079.77.

The projected closing price is: 1,126.72.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 23.9589. This is not an overbought or oversold reading. The last signal was a sell 2 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 50.17. 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 4 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 -80. This is not a topping or bottoming area. The last signal was a sell 2 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed down -30.670 at 1,124.810. Volume was 21% above average (neutral) and Bollinger Bands were 8% narrower than normal.

Open High Low Close Volume___
1,143.6001,143.9101,112.7801,124.810 2,157,310

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

Moving Averages: 10-period 50-period 200-period
Close: 1,152.78 1,090.06 1,055.40
Volatility: 23 28 28
Volume: 1,528,141 1,641,687 1,621,429

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 gapped down today (bearish) 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 6.6% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into GOOG.O (mildly bullish). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 34 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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