Cimic Group Ltd (ASX:CIM) HEFFX Highlights

Cimic Group Ltd (ASX:CIM) HEFFX Highlights

Cimic Group Ltd (ASX:CIM) HEFFX Highlights

  • CIMIC Group Ltd (CIM.AX) shares have moved above the Chalkin Money Flow zero line, indicating potential buying momentum for the shares.
  • The Chaikin Money Flow Indicator is an oscillator developed by Marc Chaikin. An oscillator is an indicator that is used as a counter trend showing when the market is overbought or oversold. These indicators are momentum based.
  • The CMF is based largely on the Accumulation Distribution Line; it compares the close value with the high and the low for that same day. Generally, CMF indicator could be used as an indicator of buying and selling pressure. When CMF is above zero it is indicator of buying pressure and when it is below zero it is indicator of selling pressure.
  • Checking on current RSI levels on shares of CIMIC Group Ltd (CIM.AX), the 14-day RSI is currently standing at 70.62, the 7-day is at 80.73, and the 3-day is resting at 89.75. Relative Strength Index (RSI) is a frequently used technical analysis tool.
  • RSI helps measure changes in price movement of a specific equity. RSI is a momentum oscillator that moves in a range from 0 to 100. RSI is generally used to interpret whether a stock is overbought or oversold. As a general rule, an RSI over 70 may indicate an overbought situation. On the other end of the spectrum, a reading under 30 may indicate an oversold situation.

CIMIC Group Limited is an international contractor and contract miner. It provides construction, mining, mineral processing, engineering, concessions, and operation and maintenance services to the infrastructure, resources and property markets. Its segments include Construction, Mining & Mineral Processing, Services, HLG Contracting LLC (HLG), Public Private Partnerships (PPP), Engineering, Commercial & Residential, and Corporate. Construction operates through CPB Contractors Pty Limited. Mining & Mineral Processing operates through Thiess Pty Limited and Sedgman Limited. Services includes UGL Limited’s operations. HLG is engaged in construction. PPP includes the Company’s project finance division, Pacific Partnerships. Engineering includes its engineering and technical services business. Its projects include Lake Vermont, Mount Owen and Curragh North coal mines; rail and road activities; social infrastructure projects, and QGC Surat Basin project. It operates in over 20 countries.

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 39.50.

The projected upper bound is: 43.48.

The projected lower bound is: 40.35.

The projected closing price is: 41.91.

CIMIC FPO closed down -0.220 at 41.870. Volume was 22% above average (neutral) and Bollinger Bands were 111% wider than normal.

Open        High          Low          Close         Volume
42.150      42.370      41.850      41.870      452,287

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

Moving Averages: 10-period      50-period      200-period
Close:                       40.51              39.63             35.83
Volatility:                35                    25                  29
Volume:                  558,426         342,533         378,354

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

CIMIC FPO is currently 16.9% 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 CIM.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on CIM.AX 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 75.5400. This is not an overbought or oversold reading. 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 68.05. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 96. 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 7 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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