Alphabet Inc. (NASDAQ:GOOG) was down more than $50 at one point in afternoon trading
A massive selloff on Wall Street did not spare San Francisco Bay Area firms on Monday as major tech giants saw their stocks tumble.
The downturn comes after China let its currency sink to the lowest level in more than a decade, escalating its trade war with the U.S.
The Dow Jones Industrial Average sank 800 points Monday, or 3%, its worst drop of the year.
Technology companies and banks fell the most. By noon Pacific time, Apple had lost five percent of its value, nearly $11 per-share. The stock closed down $10.68.
The per share loss was even greater at Google’s parent company Alphabet. Stock was down more than $50 at one point in afternoon trading before recovering to close down $41.57.
Facebook, Salesforce and Uber were down between four and five percent in afternoon trading.
China’s central bank allowed the yuan to sink below seven per dollar.
Losses were steep and worldwide as the sell-off that began Monday in Asia swept westward through Europe to the Americas. Investors in search of safety herded into U.S. government bonds, which sent yields plunging lower.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 1,148.99.
The projected upper bound is: 1,220.86.
The projected lower bound is: 1,084.24.
The projected closing price is: 1,152.55.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 24 white candles and 26 black candles for a net of 2 black 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 4 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 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 9.6343. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 3 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 48.16. 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 -34. This is not a topping or bottoming area. The last signal was a sell 3 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 6 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -41.670 at 1,152.320. Volume was 100% below average (consolidating) and Bollinger Bands were 31% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,190.31 1,122.58 1,118.94
Volatility: 65 38 36
Volume: 1,844,548 1,537,415 1,632,054
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 gapped down today (bearish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
ALPHABET INC C is currently 3.0% 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 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 31 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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