Sunday, 17 August 2014 17:06

Home Inns (HMIN) bearish, with a caveat

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(2 votes)

Home Inns & Hotels Management slips back to bearish

Are we done here? Although our EMA setup looks poised for support, our other indicators say this could be time to look at other investment opportunities.

MACD is bearish, stochastic is bearish and our CCI generated a short signal on Friday’s close.

However, we would warn traders to keep alert to a possible return to bullish environment as recent ~10% correction could just be from the July 28th coloring outside the line action. Home Inns & Hotel Management (HMIN, profile) reported Q2 earnings last week and the results weren’t exactly anything to get excited about, but management did sound a less ominous tone than earlier in the year. With the mix of technical showing a possible bullish setup developing, and fundamentals that might give rise to optimism, there may be some changes ahead worth keeping an eye on.

 

Current technical rating is: -2.25 (previously rated a 1.5)

Note: technical ratings are -3 to +3 indicating bearish to bullish; a zero is neutral to cautionary.

 

 

Price and moving averages:

HMIN (Home Inns & Hotels) has closed below its short term moving average.

Short term moving average is currently above mid-term, and above long term moving averages.

Mid-term moving average is currently above long term

The relationship between price and moving averages is: neutral in short term, and bullish in mid-long term.

 

Bollinger Bands:

HMIN(Home Inns & Hotels) has closed above bottom band by 16.2%.

Bollinger Bands are 32.5% narrower than normal.

The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.

 

CCI generated a sell short signal on Friday’s close.

 

MACD

Crossovers:

Currently MACD is bearish since it is trading below its signal line.

MACD crossed below its signal line 7 period(s) ago.

Since MACD crossed its moving average, HMIN's price has decreased -2.50% and has ranged from a high of 35.64 to a low of 33.44.

Overbought/Oversold:

MACD is not in an overbought/oversold range.

Divergence:

There have been no divergence signals within the last 5 periods.

 

 

About the Technical Rating Indicator

The Technical Rating Indicator combines established methods of technical analysis along with regression analysis and a weighting system based on signal strength to provide a technical rating. Note that none of the indicators use standard settings, and none of the settings have been optimized to fit a particular data set (avoiding in-sample bias). The result is a clean, proprietary technical research rating system.

The Technical Rating Indicator is expressed in values ranging from -3 to +3.

A technical rating of -3 is issued when all individual indicators are exhibiting readings consistent with previous periods of negative prices (i.e. conditions are “bearish” for the stock price, based on historical analysis). A technical rating of +3 is issued when the individual indicators are exhibiting readings consistent with previous periods of positive price movement (i.e. conditions are “bullish” for the stock, based on historical analysis). Intermediate readings indicate a mix of signals from the inputs to the Technical Rating Indicator.

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