China Mobile Ltd. (ADR) (NYSE:CHL) CM Chief warns of Unlimited Data

China Mobile Ltd. (ADR) (NYSE:CHL) CM Chief warns of Unlimited Data

China Mobile Ltd. (ADR) (NYSE:CHL) CM Chief warns of Unlimited Data

  • Unlimited data plans may increase revenue in the short run, but are ultimately unsustainable for the industry, China Mobile chief executive Li Yue said on Wednesday.
  • Li told reporters after the company’s annual general meeting that unlimited data plans without a cap on how much data can be used may be profitable for operators today, but will ultimately cause losses for the industry in the future.
  • His comments came after China Telecom and smartphone maker Xiaomi announced an unlimited data package for Xiaomi users
  • China Mobile has pushed out data plans, but data speeds are throttled once users use over 12 or 20 gigabytes of data per month depending on their subscription plans.

ADR, China, CHL, communication, heffx, mobile, NYSE, Phone, shayne heffernan

China Mobile Limited is an investment holding company principally engaged in telecommunication and related businesses. Its main businesses include Mobile businesses and Wireline Broadband businesses. Mobile businesses include two categories of services. Voice services include local calls, domestic and international long distance calls, roaming services and voice value-added services. Data services include short message services and multimedia message services, wireless data traffic services and application and information services, such as Mobile Music, Mobile Reading and Mobile Video, among others. Wireline Broadband businesses include the provision of wireline broadband and related services. The Company also provides customer services, including phone bill enquiry, among others. The Company mainly operates businesses in Mainland China.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 57.53.

The projected lower bound is: 54.14.

The projected closing price is: 55.83.

CHINA MOBILE closed up 0.090 at 55.810. Volume was 42% below average (neutral) and Bollinger Bands were 1% narrower than normal.

Open         High          Low           Close        Volume
55.910      56.030      55.780      55.810      342,497

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

Moving Averages: 10-period       50-period      200-period
Close:                       55.29              54.94              56.82
Volatility:                10                    19                    19
Volume:                   571,555          622,060         615,573

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
CHINA MOBILE is currently 1.8% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of CHL at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CHL and have had this outlook for the last 8 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 89.6465. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 63.30. 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 46 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 127.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 16 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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