| | | | | Commentary | | The Straits Times index rose 0.36% or 11.24pts to 3111.63 (day range: 3118.3 - 3105.58) on Monday. The index is above its 20d MA (@ 3048) and above its 50d MA (@ 2982).Trading volume on the index was high, 42% above the 3 months average. On a daily basis, the index remains above its rising 20-day moving average, and is looking for a higher top. The rising 50-day moving average also maintains a bullish bias. Meanwhile, the relative strength index is still above its neutrality area at 50 and lacks downward momentum. The ST outlook remains bullish: as long as 3015 is not broken down, further upside is preferred in the short term. The HSI index rose 0.58% or 136pts to 23710.98 (day range: 23751.92 - 23615.39) on Monday. The index is above its 20d MA (@ 23189) and above its 50d MA (@ 22684). Trading volume on the index was high, 30.9% above the 3 months average. On the daily chart, the index has rebounded on its rising 20-day moving average, which remains above the 50-day one. Meanwhile the relative strength index has broken above a negative trend line, and stays above the neutrality area at 50. Therefore, as long as the index stays above the key support at 23000, expect further bounce toward 24050 and 24400 (September 2016 high) in extension. |
| Straits Times Intraday: the upside prevails. |  | Pivot: 3090.00
Our preference: long positions above 3090.00 with targets at 3120.00 & 3130.00 in extension.
Alternative scenario: below 3090.00 look for further downside with 3075.00 & 3060.00 as targets.
Comment: the RSI is mixed to bullish.
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| |  | | Opinion published is a ST (short-term) view. Green Lines Represent Resistance | Red Represents Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced | | Associated Warrants for Straits Times |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 3000.00 | 28/04/2017 | 0.6 | CBVW | Macquarie Bank | STI MBL ECW170428% | Medium risk | 2500.0 % | 10.0 % | | Call | 2900.00 | 28/04/2017 | 0.8 | CBUW | Macquarie Bank | STI MBL ECW170428% | Low risk | 2500.0 % | 12.3 % | | Put | 2950.00 | 28/04/2017 | -0.3 | CBXW | Macquarie Bank | STI MBL EPW170428% | High risk | 2500.0 % | 10.4 % | | Put | 2950.00 | 28/04/2017 | -0.3 | CBXW | Macquarie Bank | STI MBL EPW170428% | High risk | 2500.0 % | 10.4 % |
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| Hang Seng Intraday: the bias remains bullish. | | Pivot: 23600
Our preference: long positions above 23600 with targets at 23800 & 23875 in extension.
Alternative scenario: below 23600 look for further downside with 23500 & 23350 as targets.
Comment: the RSI is mixed with a bullish bias.
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| |  | | Opinion published is a ST (short-term) view. Green Lines Represent Resistance | Red Represents Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced | | Associated Warrants for Hang Seng |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 24200.00 | 27/04/2017 | 0.4 | CCUW | Macquarie Bank | HSI MBL ECW170427% | High risk | 1000.0 % | 14.2 % | | Call | 23800.00 | 30/03/2017 | 0.5 | CCFW | Macquarie Bank | HSI MBL ECW170330% | Medium risk | 1000.0 % | 18.3 % | | Call | 23000.00 | 30/03/2017 | 0.6 | CCEW | Macquarie Bank | HSI MBL ECW170330% | Medium risk | 1000.0 % | 12.7 % | | Put | 22600.00 | 29/05/2017 | -0.3 | CECW | Bank Vontobel | HSI VT EPW170529% | Medium risk | 1000.0 % | 11.4 % | | Put | 22600.00 | 29/05/2017 | -0.3 | CECW | Bank Vontobel | HSI VT EPW170529% | Medium risk | 1000.0 % | 11.4 % | | Put | 22600.00 | 29/05/2017 | -0.3 | CECW | Bank Vontobel | HSI VT EPW170529% | Medium risk | 1000.0 % | 11.4 % |
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| DBS Group Intraday: bullish bias above 18.85. | | Pivot: 18.85
Our preference: long positions above 18.85 with targets at 19.05 & 19.11 in extension.
Alternative scenario: below 18.85 look for further downside with 18.76 & 18.68 as targets.
Comment: even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
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| |  | | Opinion published is a ST (short-term) view. Green Lines Represent Resistance | Red Represents Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced | | Associated Warrants for DBS Group |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 19.50 | 10/07/2017 | 0.4 | CBJW | Macquarie Bank | DBS GROUP MBL ECW170710% | Medium risk | 8.0 % | 7.9 % | | Call | 18.00 | 03/07/2017 | 0.6 | CBDW | Macquarie Bank | DBS GROUP MBL ECW170703% | Low risk | 8.0 % | 7.1 % | | Put | 18.00 | 02/10/2017 | -0.5 | CBNW | Macquarie Bank | DBS GROUP MBL EPW171002% | Medium risk | 8.0 % | 5.8 % | | Put | 16.80 | 30/10/2017 | -0.4 | CBOW | Macquarie Bank | DBS GROUP MBL EPW171030% | Medium risk | 8.0 % | 7.3 % |
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 | MA (50) & MA (20): The most simple trend indicators are Moving Averages. They simply correspond to an average calculated on an evolving time scale (20 and 50 periods): every day, the oldest value (often taken at the close) in the average calculus is replaced by the value of the new session.
Bollinger bands: are represented by 3 different bands and are derived from moving averages. The middle band corresponds to a simple moving average (MA (20)). The level of the upper band, in every point, corresponds to the sum of the level of the middle band and twice the value of the standard deviation associated to the 20-day moving average. Reciprocally, the level of the lower band corresponds to the level of the middle band diminished by twice the value of the standard deviation associated to the 20-day moving average. An envelop of the stock price is thus determined. This makes it possible to then identify the variation margin in which the stock should stay almost systematically. In the case of a stock following a Gauss law, 95 % of the trades will thus occur between these bands.
RSI (14): the Relative Strength Index aims at establishing a reference scale independently from the stock prices levels themselves. As the RSI has boundaries (0 and 100), it then becomes very easy to determine overbought (above 70) and oversold (below 30) areas. In addition, just as on prices themselves, supports and resistances can appear, especially when nearing the neutrality zone (near 50). Thus, the RSI is one of the most commonly used counter-trend indicators.
It is based on the average of rises and drops of price, with the formula:
RSI = 100 - [100 / (1 + RS)]
Where RS represents the average of up closes divided by the average of down closes on the considered period (14). | |
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