Alphabet Inc. (NASDAQ:GOOG) the least volatile of the five popular stocks called FAANG
Internet content giant Alphabet Inc. has been the least volatile of the five popular stocks called FAANG. All have lost momentum and all ended Monday in bear market territory. The others are Facebook Inc.; Amazon.com Inc.; Apple Inc.; and Netflix Inc.
Alphabet has a reasonable P/E ratio of 23.67, which is a positive for a momentum stock, but without paying a dividend, it is important for the stock to regain its lost momentum.
The first important indicator for Alphabet is to stay above the bear market threshold, which is a share price of $1,033.00. The stock closed Monday at $1,025.65, down just 2.6% year to date but in bear market territory 20.6% below the all-time intraday high of $1,291.44 set on July 27. The stock dipped into bear market territory for the first time on Oct. 29, with a low that day of $1,007.20, then bounced to my semiannual pivot at $1,101.14 between Oct. 31 and Nov. 8, then dipped to $1,002.21 on Nov. 20. Monday’s dip to $1,016.63 was thus the third dip. This drop occurred after a failed test of its 200-day simple moving average at $1,129.92 on Dec. 3. This type of volatility can be traded, and I say there’s another opportunity now.
A week ago, as the stock was sliding, Google’s CEO Sundar Pichai testified to the House Judiciary Committee. The stock stabilized slightly as he dodged questions about political bias, Chinese issues and the privacy of user data. Stability was short-lived, and the stock fell along with the other FAANG brethren.
Overall, the bias in prices is: Downwards
The projected upper bound is: 1,100.28.
The projected lower bound is: 952.00.
The projected closing price is: 1,026.14.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 23.4382. This is not an overbought or oversold reading. The last signal was a buy 4 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 43.67. 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 buy 45 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 -101.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 5 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed up 12.180 at 1,028.710. Volume was 27% above average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1,046.04 1,067.48 1,118.07
Volatility: 42 44 33
Volume: 1,953,614 1,981,259 1,707,811
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 8.0% 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 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 0 periods.