Qantas Airways Limited (ASX:QAN) HEFFX Highlights

Qantas Airways Limited (ASX:QAN) HEFFX Highlights

Qantas Airways Limited (ASX:QAN) HEFFX Highlights

OVERSEAS investors in ­Qantas Airways could soon be forced to offload some of their stock as they flirt with the ­foreign ownership ceiling at the resurgent flag carrier.

In a development that threatens to reignite the ­debate over the ownership cap, the Flying Kangaroo has ­revealed foreign investors now own 46.73 per cent of its shares.

It comes as investors abroad increasingly clamour for a slice of the group amid a phoenix-like rise in its share price under long-serving chief executive Alan Joyce.

Mr Joyce has previously called for the 49 per cent cap on foreign ownership at Qantas to be axed, saying it hinders the airline’s ability to compete.

Qantas Airways Limited is an Australia-based company, which operates domestic and international airline. The Company is engaged in the operation of international and domestic air transportation services, the provision of freight services and the operation of a frequent flyer loyalty program. Its segments include Qantas Domestic, Qantas International, Jetstar Group, Qantas Freight, Qantas Loyalty and Corporate. The Qantas Domestic, Qantas International and Jetstar Group segments include passenger flying businesses. The Qantas Freight segment is engaged in the air cargo and express freight business. The Qantas Loyalty segment is engaged in the customer loyalty recognition programs. Its main business is the transportation of customers using two airline brands, which include Qantas and Jetstar. It also operates subsidiary businesses, including other airlines and businesses in specialist markets, such as Q Catering. Its airline brands operate regional, domestic and international services.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 5.59.

The projected lower bound is: 5.07.

The projected closing price is: 5.33.

QANTAS closed up 0.020 at 5.320. Volume was 23% below average (neutral) and Bollinger Bands were 31% wider than normal.

Open       High       Low         Close      Volume
5.280      5.405      5.250      5.320      8,170,989

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

Moving Averages: 10-period       50-period        200-period
Close:                       5.35                 5.39                  4.04
Volatility:                26                    30                      30
Volume:                  8,688,470      10,630,952      9,067,243

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

QANTAS is currently 31.5% above 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 QAN.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on QAN.AX and have had this outlook for the last 9 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 50.5377. This is not an overbought or oversold reading. The last signal was a buy 4 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 43.16. 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 -60. This is not a topping or bottoming area. The last signal was a buy 4 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 20 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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