$6501.T #Japan #Tokyo #Nikkei #ShayneHeffernan #StockBuy #Stocks #Industrial
Hitachi, Microsoft Enter Strategic Manufacturing Alliance
Hitachi
Ticker: 6501.T
Price: ¥3385.00
Recommendation: Buy
Target: ¥4816.92
Industry Outlook
The global electric locomotives market is expected to decline from $6.53 billion in 2019 to $6.4 billion in 2020 at a compound annual growth rate (CAGR) of -1.99%.
The decline is mainly due to the COVID-19 outbreak that has led to restrictive containment measures involving social distancing, remote working, and the closure of industries and all travel and transport activities. The market is then expected to recover and reach $7.85 billion in 2023 at CAGR of 7.06%.
Business Summary
Hitachi, Ltd. provides solutions to customers in a range of sectors, including power/energy, industry/distribution/water and others.
The Company operates in eight segments. The Information & Telecommunication Systems segment provides system integration, consulting, cloud service and others.
The Social & Industrial Systems segment provides industrial equipment and plants, thermal power, nuclear power and natural energy power generation systems and others.
The Electronic Systems & Equipment segment provides semiconductor manufacturing equipment and others.
The Construction Machinery segment provides hydraulic excavators, wheel loaders and others.
The High Functional Materials segment provides materials for semiconductors and displays and others.
The Automotive Systems segment provides engine powertrain systems and others.
The Smart Life & Ecofriendly Systems segment provides business air conditioners and others.
The Others segment provides optical disk drive products and others.
Shayne Heffernan Trade Idea
“Our current price target of Hitachi will come in around ¥4816.92 giving the stock a price increase of +42.26%. We recommend buying on dips.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Downwards.
The projected upper bound is: 3,652.93.
The projected lower bound is: 3,132.15.
The projected closing price is: 3,392.54.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 29 white candles and 20 black candles for a net of 9 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. There have been 5 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum Indicators
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 23.2432. This is not an overbought or oversold reading. The last signal was a buy 9 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 45.31. 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 13 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 -138.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.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.
Rex Takasugi – TD Profile
HITACHI closed down -60.000 at 3,388.000. Volume was 34% below average (neutral) and Bollinger Bands were 39% narrower than normal.
Open High Low Close Volume 3,390.000 3,402.000 3,351.000 3,388.000 2,784,000
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 3,489.30 3,338.37 3,827.76 Volatility: 40 50 48 Volume: 2,914,220 3,534,794 3,703,493
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
HITACHI 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.
HITACHI is currently 11.5% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect volume flowing into and out of 6501.T at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on 6501.T and have had this outlook for the last 3 periods.
Hitachi, Ltd. (6501.T) Target Price ¥4800 added by HEFFX on
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