APA Group (ASX:APA) To Solve Gas Crisis

APA Group (ASX:APA) To Solve Gas Crisis

APA Group (ASX:APA) To Solve Gas Crisis

Pipeline operator APA Group yesterday announced it would study the development of a pipeline from the coal-seam gas fields near Moranbah south to the Surat Basin near Gladstone, effectively connecting the northern fields — which are said to contain enough gas to meet eastern Australia’s needs for 20 years — into the east coast market.

The plan will be underpinned by a memorandum of understanding between APA and Blue Energy, the junior gas play chaired by former Santos chief executive John Ellice-Flint.

Coupled with APA’s recently announced plans for a pipeline connecting the Galilee Basin gasfields into the east coast grid, APA is now studying projects that would involve about 750km of pipelines at a cost of about $800 million.

APA Group is engaged in the natural gas infrastructure business. The Company’s principal activities include the ownership and operation of energy infrastructure assets and businesses, including energy infrastructure, primarily gas transmission businesses located across Australia; asset management and operations services for its energy investments and third parties, and energy investments in listed and unlisted entities. Its segments include Energy Infrastructure, Asset Management and Energy Investments. The Energy Infrastructure segment includes its pipelines, gas assets, the Emu Downs Wind Farm and Diamantina and Leichhardt Power Stations. The Asset Management segment provides commercial, operating services and asset maintenance services to its energy investments and Australian Gas Networks Limited. The Energy Investment segment includes its stakes in a range of investment entities that house energy infrastructure assets. Its services include gas transmission and gas distribution.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 9.15.

The projected upper bound is: 9.19.

The projected lower bound is: 8.49.

The projected closing price is: 8.84.

APA GROUP STAPLE closed up 0.100 at 8.850. Volume was 13% below average (neutral) and Bollinger Bands were 116% wider than normal.

Open       High        Low        Close       Volume
8.810      8.940      8.790      8.850      1,966,992

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

Moving Averages: 10-period       50-period       200-period
Close:                       9.01                 9.40                8.70
Volatility:                21                     24                    22
Volume:                   2,532,012      2,523,859      2,532,136

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

APA GROUP STAPLE is currently 1.7% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume out of APA.AX (mildly bearish). Our trend forecasting oscillators are currently bearish on APA.AX and have had this outlook for the last 15 periods.

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 16.6668. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 6 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 35.14. 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 27 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 -99. 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 14 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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