| | | | | Commentary | | The Straits Times index dropped 0.19% or 5.97pts to 3137.43 (day range: 3142.5 - 3116.34) on Wednesday. The index is above its 20d MA (@ 3122) and above its 50d MA (@ 3068). 53% of the index constituents are above their 20D MA (vs 60% the previous session) and 73% of the shares are above their 50D MA (vs 70%). On a daily basis, the index is still supported by its rising 20-day moving average and remains on the upside. The rising 50-day moving average also maintains a bullish bias. Meanwhile, the relative strength index is still above its neutrality area at 50. The ST outlook remains bullish: as long as 3075 is not broken down, further upside is preferred in the short term. The HSI index fell 0.15% or 35.1pts to 23792.85 (day range: 23842.81 - 23645.51) on Wednesday. The index is below its 20d MA (@ 23842) and above its 50d MA (@ 23372). 44% of the index constituents are above their 20D MA (vs 53% the previous session) and 77% of the shares are above their 50D MA (vs 74%). On the daily chart, the index has rebounded on its lower Bollinger band and remains above the horizontal support at 23290. The 50-day moving average is rising and is also playing a support role. Even though a continuation of the consolidation in current stage cannot be ruled out, its extent should be limited. As long as the index stays above the key support at 23290, expect further bounce toward 24400. |
| Straits Times Intraday: bullish bias above 3120.00. |  | Pivot: 3120.00
Our preference: long positions above 3120.00 with targets at 3150.00 & 3160.00 in extension.
Alternative scenario: below 3120.00 look for further downside with 3105.00 & 3096.00 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 Straits Times |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 3000.00 | 28/04/2017 | 0.7 | CBVW | Macquarie Bank | STI MBL ECW170428% | Low risk | 2500.0 % | 12.0 % | | Call | 3050.00 | 30/06/2017 | 0.6 | CDKW | Macquarie Bank | STI MBL ECW170630% | Low risk | 2500.0 % | 9.9 % | | Put | 2950.00 | 28/04/2017 | -0.4 | CBXW | Macquarie Bank | STI MBL EPW170428% | High risk | 2500.0 % | 26.4 % | | Put | 2900.00 | 30/06/2017 | CDMW | Macquarie Bank | STI MBL EPW170630% | Medium risk | 2500.0 % | 10.2 % |
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| Hang Seng Intraday: the bias remains bullish. | | Pivot: 23700
Our preference: long positions above 23700 with targets at 23920 & 24060 in extension.
Alternative scenario: below 23700 look for further downside with 23560 & 23450 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 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 % | 18.0 % | | Call | 23800.00 | 30/03/2017 | 0.5 | CCFW | Macquarie Bank | HSI MBL ECW170330% | Medium risk | 1000.0 % | 28.9 % | | Call | 23000.00 | 30/03/2017 | 0.7 | CCEW | Macquarie Bank | HSI MBL ECW170330% | Low risk | 1000.0 % | 12.9 % | | Put | 22600.00 | 29/05/2017 | -0.3 | CECW | Bank Vontobel | HSI VT EPW170529% | High risk | 1000.0 % | 15.6 % | | Put | 23200.00 | 30/03/2017 | -0.3 | CEOW | Macquarie Bank | HSI MBL EPW170330% | High risk | 1000.0 % | 37.1 % | | Put | 22800.00 | 27/04/2017 | -0.3 | CENW | Macquarie Bank | HSI MBL EPW170427% | High risk | 1000.0 % | 18.5 % |
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| OCBC Intraday: the bias remains bullish. | | Pivot: 9.54
Our preference: long positions above 9.54 with targets at 9.66 & 9.72 in extension.
Alternative scenario: below 9.54 look for further downside with 9.49 & 9.45 as targets.
Comment: a support base at 9.54 has formed and has allowed for a temporary stabilisation.
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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 | 0.4 | CBHW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL ECW171002% | Medium risk | 7.0 % | 4.9 % | | Call | 9.50 | 02/10/2017 | 0.4 | CBHW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL ECW171002% | Medium risk | 7.0 % | 4.9 % | | Put | 8.40 | 02/10/2017 | -0.4 | CBIW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL EPW171002% | Medium risk | 7.0 % | 8.8 % | | Put | 8.40 | 02/10/2017 | -0.4 | CBIW | Macquarie Bank | OVERSEA-CHINESE BANKING CORP MBL EPW171002% | Medium risk | 7.0 % | 8.8 % |
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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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