Qantas Airways Limited (ASX:QAN) HEFFX Highlights

Qantas Airways Limited (ASX:QAN) HEFFX Highlights

Qantas Airways Limited (ASX:QAN) HEFFX Highlights

  • Qantas dropped from 9th to 15th in the Skytrax World’s Top Airline ranking
  • The airline won two awards but it is the lowest ranking for Qantas since 2012
  • Virgin Australia climbed ahead of Qantas to 13th position in the rankings
  • The airline won Best Airline and Best Staff awards in Australia/Pacific region
  • Jetstar and Tigerair climbed to 44th and 90th position respectively
  • LNG producer Santos Ltd (ASX: STO) hit a 16-month low of $2.99 as benchmark oil futures trade at 7-month lows, as global crude production again exceeds supply.
  • Both WTI and Brent crude oil benchmarks are down 15% since May and have been in a downward trend for nearly three years.

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: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

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

By the way, prices are vulnerable to a correction towards 4.89.

The projected upper bound is: 5.72.

The projected lower bound is: 5.34.

The projected closing price is: 5.53.

QANTAS closed unchanged at 5.500. Volume was 19% above average (neutral) and Bollinger Bands were 53% wider than normal.

Open       High      Low         Close       Volume
5.490      5.545      5.405      5.500      12,345,152

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

Moving Averages: 10-period         50-period       200-period
Close:                       5.38                  4.71                  3.71
Volatility:                20                     26                     29
Volume:                   14,862,115      11,805,932      8,895,090

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 48.1% above 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 into QAN.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on QAN.AX and have had this outlook for the last 38 periods. Our momentum oscillator is currently indicating that QAN.AX is currently in an overbought condition.

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 52.3256. This is not an overbought or oversold reading. The last signal was a sell 3 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 79.79. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 54 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 73. This is not a topping or bottoming area. The last signal was a sell 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 buy 6 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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