| | | | | Commentary | | The Straits Times index rose 0.43% or 12.54pts to 2898.3 (day range: 2900.42 - 2884.55) on Wednesday. The index is below its 20d MA (@ 2926) and above its 50d MA (@ 2865). 13% of the index constituents are above their 20D MA (vs 13% the previous session) and 53% of the shares are above their 50D MA (vs 50%). Trading volume on the index was low, 69.3% below the 3 months average. On a daily basis, the index is bouncing on its 50-day moving average support but stays below the 20-day moving average. Meanwhile the relative strength index is around 50 and lacks upward momentum. As long as 2940 holds as the key resistance, expect further decline toward 2855 at first. The HSI index rose 0.83% or 179.98pts to 21754.74 (day range: 21811.96 - 21488.82) on Wednesday. The index is below its 20d MA (@ 22316) and below its 50d MA (@ 22621). 5% of the index constituents are above their 20D MA (vs 2% the previous session) and 7% of the shares are above their 50D MA (vs 7%). On the daily chart, the index is posting a rebound but stays below its 20-day moving average, which remains below the 50-day one. And the relative strength index still remains below 50. As long as 22435 is not broken above, look for 21200 as the next target. |
| Straits Times Intraday: rebound. |  | Pivot: 2880.00
Our preference: long positions above 2880.00 with targets at 2910.00 & 2920.00 in extension.
Alternative scenario: below 2880.00 look for further downside with 2870.00 & 2860.00 as targets.
Comment: the RSI shows upside momentum.
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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 | 0.4 | CBVW | Macquarie Bank | STI MBL ECW170428% | Medium risk | 2500.0 % | 9.9 % | | Call | 2950.00 | 28/02/2017 | 0.5 | BYMW | Macquarie Bank | STI MBL ECW170228% | Medium risk | 2500.0 % | 13.5 % | | Put | 2850.00 | 28/04/2017 | -0.5 | CBWW | Macquarie Bank | STI MBL EPW170428% | Low risk | 2500.0 % | 8.2 % | | Put | 2750.00 | 28/02/2017 | BYNW | Macquarie Bank | STI MBL EPW170228% | High risk | 2500.0 % | 12.4 % |
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| Hang Seng Intraday: the bias remains bullish. | | Pivot: 21650
Our preference: long positions above 21650 with targets at 21820 & 21900 in extension.
Alternative scenario: below 21650 look for further downside with 21580 & 21500 as targets.
Comment: the RSI is bullish and calls for further upside.
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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 | 22600.00 | 27/02/2017 | 0.4 | CBYW | Macquarie Bank | HSI MBL ECW170227% | High risk | 1000.0 % | 17.0 % | | Call | 22400.00 | 30/03/2017 | 0.4 | CARW | UBS | HSI UBS ECW170330% | Medium risk | 1000.0 % | 12.5 % | | Call | 23000.00 | 30/03/2017 | 0.3 | CCEW | Macquarie Bank | HSI MBL ECW170330% | Medium risk | 1000.0 % | 13.0 % | | Put | 21200.00 | 27/02/2017 | CBZW | Macquarie Bank | HSI MBL EPW170227% | High risk | 1000.0 % | 9.6 % | | Put | 2130.00 | 17/03/2017 | -0.3 | CAZW | Macquarie Bank | HSI MBL EPW170317% | High risk | 800.0 % | 12.7 % | | Put | 21400.00 | 26/01/2017 | -0.4 | CAQW | Macquarie Bank | HSI MBL EPW170126% | High risk | 1000.0 % | 18.5 % |
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| OCBC Intraday: continuation of the rebound. | | Pivot: 8.95
Our preference: long positions above 8.95 with targets at 9.13 & 9.17 in extension.
Alternative scenario: below 8.95 look for further downside with 8.90 & 8.85 as targets.
Comment: the RSI advocates for further upside.
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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 OCBC |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 9.50 | 02/10/2017 | 0.5 | CBHW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL ECW171002% | Low risk | 7.0 % | 6.9 % | | Call | 9.15 | 18/01/2017 | 0.65 | BVXW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL ECW170118% | Medium risk | 10.0 % | 41.9 % | | Put | 8.40 | 02/10/2017 | -0.5 | CBIW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL EPW171002% | Medium risk | 7.0 % | 6.3 % | | Put | 8.20 | 06/03/2017 | -0.3 | BYOW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL EPW170306% | High risk | 7.0 % | 18.4 % |
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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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