Macquarie Group Ltd (ASX:MQG) HEFFX Highlights

Macquarie Group Ltd (ASX:MQG) HEFFX Highlights

Macquarie Group Ltd (ASX:MQG) HEFFX Highlights

  • Macquarie Group, the world’s largest infrastructure manager, could be forced into a fire sale of ­assets as it comes under pressure from rising interest rates, big debts and stalled earnings, according to Citi.
  • Despite booking a record $2.2 billion profit last year, Macquarie’s earnings have been coming under increasing pressure.
  • The growth in profit last year was largely driven by paying a lower tax rate and the lowest rate of souring loans in six years, as revenue streams were fairly flat.

Macquarie Group Limited is a holding company, which provides financial services. The Company, through its subsidiaries, provides banking, financial, advisory, investment and funds management services. It is divided into six operating groups and a corporate segment. Its operating groups include Macquarie Asset Management, which provides infrastructure and real asset management, securities investment management and personalized investment solutions over funds and listed equities; Corporate and Asset Finance, which delivers finance and asset management solutions; Banking and Financial Services, which provides a range of personal banking, wealth management, and business banking products and services; Macquarie Securities Group, which is a global institutional securities house; Macquarie Capital, which provides corporate finance advisory and capital markets services, and Commodities and Financial Markets, which provides risk and capital solutions across physical and financial markets.

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 88.65.

The projected upper bound is: 90.80.

The projected lower bound is: 84.08.

The projected closing price is: 87.44.

MACQUARIE GROUP closed down -1.180 at 87.540. Volume was 16% below average (neutral) and Bollinger Bands were 36% narrower than normal.

Open         High          Low           Close         Volume
88.210      88.620      87.150      87.540      926,292

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

Moving Averages: 10-period    50-period      200-period
Close:                       88.73           89.51               86.42
Volatility:                24                 24                    24
Volume:                  981,304       1,254,040      1,082,111

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

MACQUARIE GROUP is currently 1.3% above its 200-period moving average and is in an upward 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 moderate flows of volume out of MQG.AX (mildly bearish). Our trend forecasting oscillators are currently bullish on MQG.AX and have had this outlook for the last 12 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 23.6341. 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 44.09. 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 50 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 -111.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 3 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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