Li & Fung Limited (HKG:0494) Lays Plans For Belt And Road

Li & Fung Limited (HKG:0494) Lays Plans For Belt And Road

Li & Fung Limited (HKG:0494) Lays Plans For Belt And Road

  • Li & Fung lays out supply chain of the future roadmap
  • Hong Kong-based trading group Li & Fung recently unveiled its three-year digitization plan with a goal to create “the supply chain of the future”. The company plans to invest US$150 million over the next three years to carry out this plan.
  • “Our focus is to digitize every aspect of the supply chain, speed up the time-to-market and gather more data to make better decisions for our retailers and ourselves,” said Manuel Fernandez, Group CTO at Li & Fung (Trading) Ltd.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 3.33.

The projected upper bound is: 3.36.

The projected lower bound is: 2.98.

The projected closing price is: 3.17.

LI & FUNG closed up 0.010 at 3.180. Volume was 70% below average (consolidating) and Bollinger Bands were 43% narrower than normal.

Open     High     Low     Close     Volume
3.180    3.210    3.160    3.180    12,228,393

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

Moving Averages: 10-period         50-period        200-period
Close:                       3.15                   3.36                  3.60
Volatility:                14                      34                      34
Volume:                   16,461,961      39,360,576      30,037,652

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
LI & FUNG is currently 11.6% 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 moderate flows of volume out of 0494.HK (mildly bearish). Our trend forecasting oscillators are currently bullish on 0494.HK and have had this outlook for the last 2 periods. Our momentum oscillator has set a new 14-period high while the security price 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 65.3847. 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 42.62. 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 44 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 28. This is not a topping or bottoming area. The last signal was a buy 3 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 2 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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