Cathay Pacific Airways Ltd (HKG:0293) HEFFX Highlights

Cathay Pacific Airways Ltd (HKG:0293) HEFFX Highlights

Cathay Pacific Airways Ltd (HKG:0293) HEFFX Highlights

  • Cathay Pacific Airways has denied a report that it is retrenching another 200 employees, a day after the airline said it was cutting 600 jobs in its biggest headcount reduction in almost two decades.
  • “The number of redundancies resulting from the transformation program is around 600, as we announced to our people and the public yesterday. Rumors of other figures are incorrect,” a Cathay spokesperson told CNBC on Tuesday.
  • The 70-year-old carrier is buffeted by competition from Chinese rivals and botched fuel hedges. In 2017, for just the third time, Cathay skidded to an annual loss. In May, the airline (ticker: 293.Hong Kong) announced the first step in its turnaround by slashing 600 jobs. But if this grande dame of the skies is to lift its bottom line, a much different flight path is needed.

Cathay Pacific Airways Limited is a Hong Kong-based investment holding company principally engaged in airline and related businesses. The Company operates through two segments. The Airline segment is engaged in passenger transport and cargo transport. The Non-airline segment is engaged in the provision of catering, ground handling and aircraft ramp handling services, as well as cargo terminals operation. The Company operates businesses in countries in Asia, Europe and North America.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

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

By the way, prices are vulnerable to a correction towards 11.14.

The projected upper bound is: 12.29.

The projected lower bound is: 11.16.

The projected closing price is: 11.72.

CATHAY PAC AIR closed down -0.220 at 11.720. Volume was 14% above average (neutral) and Bollinger Bands were 71% wider than normal.

Open         High        Low          Close        Volume
11.920      11.940      11.660      11.720      10,221,268

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period         50-period      200-period
Close:                      11.40                 11.21                10.97
Volatility:               52                      32                    28
Volume:                  14,518,912      8,859,438      7,323,304

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
CATHAY PAC AIR is currently 6.8% 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 0293.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on 0293.HK and have had this outlook for the last 5 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 77.2727. This is not an overbought or oversold reading. The last signal was a sell 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 58.81. 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 1 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 97. This is not a topping or bottoming area. The last signal was a sell 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 buy 6 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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