Telstra Corporation Ltd (ASX:TLS) HEFFX Highlights

Telstra Corporation Ltd (ASX:TLS) HEFFX Highlights

Telstra Corporation Ltd (ASX:TLS) HEFFX Highlights

Telstra is being urged to find a buyer for its long-term NBN revenue stream to reduce debt and carry out a major share buyback to reward its investors.

JPMorgan and Macquarie are understood to be working with the telco on the future options of its long-term NBN contract.

The Australian government reached an agreement with Telstra in 2011, where it would receive $11 billion in compensation for the use of its copper network, $4bn of which related to payments for disconnecting customers from its phone network and migrating them to the NBN.

The existing TUSO mechanism ensures that all Australians have access to fixed-line voice services and sees Telstra pocket $290 million a year to deliver the product and maintain its public switched telephone network until 2031.

To celebrate State of Origin Game Two and the NRL Live Pass, Telstra will be hosting a LIVE State of Origin show in the Telstra Sydney Icon Store at 400 George St from 11.00am to 12.00pm on Wednesday, June 21.

Telstra Corporation Limited (Telstra) is a telecommunications and technology company. Its principal activity is to provide telecommunications and information services for domestic and international customers. The Company operates through four segments. The Telstra Retail segment provides telecommunication products, services and solutions across mobiles, fixed and mobile broadband, telephony and Pay television/Internet Protocol television and digital content. The Global Enterprise and Services segment provides sales and contract management for business and government customers. The Telstra Operations segment offers overall planning, design, engineering and architecture and construction of Telstra networks, technology and information technology solution. The Telstra Wholesale segment provides a range of telecommunication products and services delivered over Telstra networks and associated support systems to other carriers, carriage service providers and Internet service providers.

Overall, the bias in prices is: Downwards.

Short term: Prices are moving.

Intermediate term: Prices are ranging.

By the way, prices are vulnerable to a correction towards 4.49.

The projected upper bound is: 4.54.

The projected lower bound is: 4.11.

The projected closing price is: 4.33.

TELSTRA FPO closed down -0.050 at 4.330. Volume was 31% below average (neutral) and Bollinger Bands were 55% narrower than normal.

Open      High      Low       Close       Volume
4.350     4.365     4.315     4.330     24,516,316

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

Moving Averages: 10-period          50-period       200-period
Close:                       4.38                   4.37                 4.81
Volatility:                12                       32                     24
Volume:                   35,995,832     38,396,128     29,783,354

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

TELSTRA FPO is currently 10.0% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of TLS.AX (mildly bearish). Our trend forecasting oscillators are currently bearish on TLS.AX and have had this outlook for the last 4 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 49.9999. This is not an overbought or oversold reading. The last signal was a buy 13 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 40.45. 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 buy 42 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 -124.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 14 period(s) ago.

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John Heffernan

John Heffernan is an Analyst at HEFFX. John is a BSc in Economics with Honors from the University of Buckingham, and is a contributor on equities at Live Trading News.

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