Dongfeng Automobile Co., Ltd (SHA:600006) Trading Outlook

Dongfeng Automobile Co., Ltd (SHA:600006) Trading Outlook

Dongfeng Automobile Co., Ltd (SHA:600006) Trading Outlook


Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

The projected upper bound is: 8.42.

The projected lower bound is: 6.93.

The projected closing price is: 7.67.

DONGFENG AUTO closed down -0.160 at 7.640. Volume was 46% below average (neutral) and Bollinger Bands were 0% narrower than normal.

Open High Low Close Volume___
7.710 7.710 7.490 7.640 21,776,096

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 8.08 7.92 8.49
Volatility: 46 61 83
Volume: 33,926,896 52,809,820 60,674,144

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.


DONGFENG AUTO gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DONGFENG AUTO is currently 10.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of 600006.SS at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on 600006.SS and have had this outlook for the last 7 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.


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 43.0147.  This is not an overbought or oversold reading.  The last signal was a  buy 2 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 37.73.  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 22 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 -119.This is an oversold reading.  However, a signal isn’t generated until the indicator crosses above -100.  The last signal was a buy 1 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line.  The last signal was a sell 21 period(s) ago.



A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles.  During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow).  This usually implies a continuation of a bearish trend.

A long lower shadow occurred.  This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Valuation Ratios

Company industry sector
P/E Ratio (TTM) 47.45 20.90 27.13
P/E High – Last 5 Yrs. 275.07 17.93 27.02
P/E Low – Last 5 Yrs. 14.98 13.01 14.25
Beta 0.86 1.22 1.20
Price to Sales (TTM) 0.93 1.62 3,955.85
Price to Book (MRQ) 2.40 2.62 2.81
Price to Tangible Book (MRQ) 2.81 2.94 3.18
Price to Cash Flow (TTM) 13.96 29,784.53
% Owned Institutions 0.01 0.17

Dongfeng Automobile Co., LTD is principally engaged in the design, manufacture and sale of light-duty commercial vehicles, under the brand names of Dongfeng and Nissan, engines and automobile-related components. The Company provides light-duty commercial vehicles under the brand names of Dongfeng Duolika, Dongfeng Kaipute, Dongfeng furuika, Dongfeng jinrui, Dongfeng lianhua, Dongfeng shuaike, as well as Dongfeng pickup trucks and Nissan kaipusida, covering light trucks, pickup trucks, construction trucks, mini trucks, buses and chassis, as well as multi-purpose vehicles (MPV) and sport utility vehicles (SUV).

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.