For more details of the news, click below link :
"Cathay Stock Drops After Posting First Loss Since 2008"
Two days later, the company reported it's plan to save 30% staff costs at their Hong Kong head office.
Details news, click below link :
"Cathay Plans 30% Staff Cost Cuts at Head Office Under Reform"
Prior to the news, the share price has been experiencing downtrend since 2015.
Below the weekly chart shows the share price broke and closed below it's first support (S-Trader Trend Tracker) at HKD17.79 on week ending 14 Aug 2015 with above average volume (S-Trader Volumetric).
The following week it broke and closed below the final support (S-Trader Trend Tracker) at HKD16.39. Since then, the share price has been trending downward.
Based on daily chart, the share price alerted much earlier warning sign of weakness, as shown below.
The first alert of weakness triggered on 10 Jun 2015 when the share price broke and closed below all it's support at HKD18.70. However, it rebounded few days later and traded between the support levels (S-Trader Trend Tracker).
8 July 2015 another weakness alert triggered. On both alerts, high volume of shares transacted (S-Trader Volumetric). Thereafter, the share price has been traded below S-Trader Trend Tracker and this is the moment investors/traders need to keep monitor it's price action on weekly chart for sign of weakness.
Back to current date, the recent released of poor financial report has impacted the share price again. Below is the latest daily chart.
A great challenge ahead for Cathay Pacific.
1. Where the share price heading to in near future ?
2. Will the organizational restructure revive the company performance ?
After the financial news reported. there was an article written based on their personal observation/analysis. For your reading pleasure, click the link below.
"The Real Reason Cathay Pacific is Losing Money"
Source :
1) Metastock
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