2016-07-29 16:11:02

Alphabet Inc., #GOOG [NASD]
Technologies, Internet information providers, USA

Financial performance of the company:
Index – S&P 500; Beta – 0.89
Capitalization – 550.00 В; Return on asset – 11.81%
Income – 66.01 В; Average volume – 2.13 М.
P/E – 32.25 ATR – 23.89.

Analytical review:

  • The company ranks the second on capitalization among the issuers traded in the American market;
  • This month company’s stocks have grown by 10%. Yesterday, the company issued report for Q2 of the fiscal year 2016, which may trigger further rise in stocks;
  • According to press-release company’s revenue has grown by 21.4% up to 21.5 billion USD. Net profit of the company rose by 24%, up to 4.88 billion USD. EPS (earnings per share) amounted to 8.42 USD against the forecast of 8.04 USD;
  • At the press-conference company’s management said that the progress was achieved due to positive results in the advertising division. Revenue in this division rose by 19.5% and amounted to 19.14 billion USD;
  • P/E Ratio also indicates possibility of the company’s growth. Alphabet P/E Ratio (32.25) is below the average P/E in industry (36.21).

Summary:

  • Last report showed that company’s management is in the right track. Revenue and net profit of the company rose above market expectations. The company has strong growth potential. Multipliers show the possibility of the company’s capitalization growth.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Alphabet Inc.

Key levels:
Support levels: 760.35 USD and 751.00 USD.
Resistance level: 776.00 USD.

Medium-term trading, Н1
Currently, the issuer has broken down and consolidated above the local resistance level of 760.35 USD. If the price maintains the mirrored support level of 760.35 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 770.00 USD, 779.00 USD and 785.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1



Short-term trading, М15
The issuer is traded between the local support and resistance levels of 759.80/766.15 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance level. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15