Alphabet Inc. (NASDAQ:GOOG) Target $1300

Alphabet Inc. (NASDAQ:GOOG) Target $1300

Alphabet Inc. (NASDAQ:GOOG) Target $1300

Deutsche said Alphabet has one of the “best” ad product pipelines.

“We increase our estimates and confidence in the medium-term outlook for Alphabet shares coming out of the Google Marketing Live keynote in San Francisco, where we see an accelerating pace of new ad product making us meaningfully more confident in the 2020 outlook. We think Google has among the best ad prod-uct pipelines we have seen since the addition of the third paid link in mobile in 2015.

The company announced a significantly larger pipeline of new advertising prod-uct at this year’s event versus last year ( Figure 3 ). We estimate that monetization of the Discover feed, alone, could add ~$7.5B annually to our estimates in a bull case for a surface essentially unmonetized historically ( Figure 1 ). Given the com-pelling ad product pipeline, we increase our estimates (primarily in 2020) and target multiples, resulting in a $1,400 target (from $1,300 previously). ”

Overall, the bias in prices is: Downwards.

The projected upper bound is: 1,223.95.

The projected lower bound is: 1,104.56.

The projected closing price is: 1,164.25.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 (which appears to be the case with ALPHABET INC C). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, 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 31.5192. This is not an overbought or oversold reading. The last signal was a buy 0 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 44.66. 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 11 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 -67. This is not a topping or bottoming area. The last signal was a buy 0 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 11 period(s) ago.

Rex Takasugi – TD Profile

ALPHABET INC C closed up 43.770 at 1,164.210. Volume was 55% above average (neutral) and Bollinger Bands were 95% wider than normal.

Open High Low Close Volume___
1,117.8701,171.3301,116.6661,164.210 2,289,302

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

Moving Averages: 10-period 50-period 200-period
Close: 1,162.11 1,197.05 1,137.01
Volatility: 33 32 34
Volume: 1,683,737 1,493,208 1,626,578

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 2.4% above its 200-period moving average and is in an downward 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 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 9 periods.

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