HEFFX Initiates Coverage on Bank of China Ltd (HKG:3988) With a Target of $5

HEFFX Initiates Coverage on Bank of China Ltd (HKG:3988) With a Target of $5

Bank of China Ltd (HKG:3988) HEFFX Highlights

Highlights:

  • Bank of China offers new credit cards with American Express
  • Bank of China looks to sell longtime US HQ at 410 Madison
  • China’s yuan weakens despite state banks’ dollar sales
  • China’s economy continues to decelerate amid transition to consumption-based economy
  • China’s Economic Reforms Have Hit a Wall
  • “China’s Economy Is Improving, But Concerns Remain,” Goldman Sachs

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 3.75.

The projected upper bound is: 3.90.

The projected lower bound is: 3.65.

The projected closing price is: 3.77.

BANK OF CHINA closed down -0.010 at 3.780. Volume was 15% below average (neutral) and Bollinger Bands were 45% narrower than normal.

Open       High       Low         Close       Volume
3.810      3.830      3.780      3.780      268,363,536

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

Moving Averages: 10-period            50-period         200-period
Close:                       3.75                      3.82                   3.58
Volatility:                15                         20                       23
Volume:                  294,231,488      328,163,360      293,643,936

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 
BANK OF CHINA is currently 5.5% above 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 3988.HK at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on 3988.HK and have had this outlook for the last 28 periods.

HEFFX Momentum
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 70.5882. This is not an overbought or oversold reading. The last signal was a sell 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 52.87. 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 49 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 94. This is not a topping or bottoming area. 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 10 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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