Qantas Airways Limited (ASX:QAN) HEFFX Highlights

Qantas Airways Limited (ASX:QAN) HEFFX Highlights

Qantas Airways Limited (ASX:QAN) HEFFX Highlights

  • Shares in Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH) have taken very different flight paths. One is soaring close to a 10-year high while the other is struggling to climb above its record lows.
  • Increasing airline capacity and a weak economy are forcing airlines into a major fare war to fill empty seats on international and domestic routes.
  • Qantas has return flights to Dallas for just $1099 and Qatar Airways is celebrating its fifth year of operating to Perth with London return flights for $1255.
  • Qatar is offering special fares to some of its 39 European cities.
  • Both Qantas and Jetstar have updated their list of prohibited items on board. The airlines opted to ban “inflatable cubes” and “bed boxes” used by kids to sleep on long flights to ensure the safety and comfort of all passengers.
  • The policy says that using in-flight travel accessories and devices attached between aircraft seats are no longer allowed. Those that hinder access to seat rows or aisles are also prohibited, the Daily Mail notes.
  • According to the Qantas website, these devices have the potential to damage aircraft seats and fixtures, preventing easy access to emergency equipment. “Examples of prohibited in-flight accessories include, but are not limited to, inflatable cubes, bed boxes, and leg hammocks,” the company’s Facebook page reads. A Qantas spokesperson said that the airline prioritises the safety of its passengers and crew.

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.

The projected upper bound is: 6.01.

The projected lower bound is: 5.59.

The projected closing price is: 5.80.

QANTAS closed unchanged at 5.770. Volume was 32% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open       High       Low        Close      Volume
5.720      5.790      5.670      5.770      7,221,899

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

Moving Averages: 10-period        50-period         200-period
Close:                       5.72                  5.13                   3.86
Volatility:                32                     26                      29
Volume:                   11,199,315      12,590,072      8,988,790

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 49.5% above its 200-period moving average and is in an upward trend. Volatility is high 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 50 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 48.3871. This is not an overbought or oversold reading. The last signal was a sell 5 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 72.59. 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 66 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 53. 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 sell 4 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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