Seven & I
The Japanese owner of 7-Eleven convenience stores has agreed to buy Marathon Petroleum Corp’s (MPC.N) Speedway gas stations for $21 billion, brushing aside coronavirus concerns to return to the table five months after initially baulking at the deal.
The acquisition is one of the biggest this year, suggesting the pandemic, while forcing many companies to focus on protecting balance sheets instead of expansion, has not killed off global dealmaking altogether.
The move will help Seven & i Holdings Co Ltd (3382.T) shift focus beyond Japan, where its stores and supermarkets face a shrinking population, slow economic growth and tough price competition.
The deal boosts its 7-Eleven store count in the United States and Canada to about 14,000, adding to a portfolio fattened three years ago with a $3.3 billion purchase from Sunoco LP (SUN.N) – furthering its convenience store lead over Canada’s Alimentation Couche-Tard Inc (ATDb.TO).
Seven & i Holdings Co., Ltd. is a Japan-based holding company engaged in the distribution business.
The Company provides convenience stores, general supermarkets, department stores, restaurants, banks, IT services.
The Company operates in seven business segments. Domestic Convenience Store segments operates convenience store businesses based on direct management and franchise systems, such as the operation of 7-Eleven stores in Japan.
Overseas Convenience Store segment operates convenience stores, such as 7-Eleven overseas.
Superstore segment is a retail business that provides food, daily necessities and other items necessary for daily life.
Department Store segment conducts retail business.
Finance-Related segment is involved in the banking, credit card business and leasing business.
Specialty Store segment operates a retail business that provides specialized and distinctive products and services.
Others segment is involved in the real estate business.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 3,544.56.
The projected upper bound is: 3,517.77.
The projected lower bound is: 3,028.47.
The projected closing price is: 3,273.12.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 39.9652. This is not an overbought or oversold reading. The last signal was a buy 0 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 42.96. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -67. This is not a topping or bottoming area. The last signal was a buy 0 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
SEVEN & I HLDG closed up 225.000 at 3,277.000. Volume was 40% above average (neutral) and Bollinger Bands were 11% wider than normal.
Open High Low Close Volume 3,262.000 3,307.000 3,201.000 3,277.000 3,317,700
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 3,334.50 3,562.76 3,838.74 Volatility: 62 45 44 Volume: 3,044,060 2,273,990 2,407,582
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.
SEVEN & I HLDG gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
SEVEN & I HLDG is currently 14.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of 3382.T (mildly bearish). Our trend forecasting oscillators are currently bearish on 3382.T and have had this outlook for the last 26 periods.
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