| | | | | Commentary | | The Straits Times index rose 0.83% or 26.09pts to 3163.52 (day range: 3168.26 - 3150.16) on Thursday. The index is above its 20d MA (@ 3125) and above its 50d MA (@ 3073). 73% of the index constituents are above their 20D MA (vs 53% the previous session) and 80% of the shares are above their 50D MA (vs 73%). On a daily basis, the index has been well 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 rose 2.08% or 495.43pts to 24288.28 (day range: 24288.28 - 24003.75) on Thursday. The index is above its 20d MA (@ 23851) and above its 50d MA (@ 23415). 81% of the index constituents are above their 20D MA (vs 44% the previous session) and 88% of the shares are above their 50D MA (vs 77%). On the daily chart, the index has opened with a bullish gap above its 20-day moving average, and is currently challenging its previous top at 24400. The immediate momentum is strong as the relative strength index is also well directed. As long as the index stays above the key support at 23440, expect a stand above 24400. A break above this level allows for an acceleration to 24900. |
| Straits Times Intraday: further upside. |  | Pivot: 3140.00
Our preference: long positions above 3140.00 with targets at 3180.00 & 3190.00 in extension.
Alternative scenario: below 3140.00 look for further downside with 3120.00 & 3105.00 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 | 3050.00 | 30/06/2017 | 0.6 | CDKW | Macquarie Bank | STI MBL ECW170630% | Low risk | 2500.0 % | 9.5 % | | Call | 3050.00 | 30/06/2017 | 0.6 | CDKW | Macquarie Bank | STI MBL ECW170630% | Low risk | 2500.0 % | 9.5 % | | Put | 2950.00 | 28/04/2017 | -0.3 | CBXW | Macquarie Bank | STI MBL EPW170428% | High risk | 2500.0 % | 25.3 % | | Put | 2900.00 | 30/06/2017 | CDMW | Macquarie Bank | STI MBL EPW170630% | Medium risk | 2500.0 % | 10.3 % |
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| Hang Seng Intraday: further upside. | | Pivot: 24050
Our preference: long positions above 24050 with targets at 24400 & 24500 in extension.
Alternative scenario: below 24050 look for further downside with 23820 & 23700 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 | 24200.00 | 27/04/2017 | 0.5 | CCUW | Macquarie Bank | HSI MBL ECW170427% | Medium risk | 1000.0 % | 15.6 % | | Call | 23800.00 | 30/03/2017 | 0.7 | CCFW | Macquarie Bank | HSI MBL ECW170330% | Low risk | 1000.0 % | 23.3 % | | Call | 24600.00 | 29/05/2017 | 0.4 | CFFW | Macquarie Bank | HSI MBL ECW170529% | High risk | 1000.0 % | 13.9 % | | Put | 23600.00 | 27/04/2017 | -0.3 | CESW | Macquarie Bank | HSI MBL EPW170427% | High risk | 1000.0 % | 18.5 % | | Put | 23200.00 | 29/06/2017 | -0.4 | CEVW | UBS | HSI UBS EPW170629% | Medium risk | 1000.0 % | 12.7 % | | Put | 23200.00 | 29/06/2017 | -0.4 | CEVW | UBS | HSI UBS EPW170629% | Medium risk | 1000.0 % | 12.7 % |
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| DBS Group Intraday: further upside. | | Pivot: 19.06
Our preference: long positions above 19.06 with targets at 19.30 & 19.37 in extension.
Alternative scenario: below 19.06 look for further downside with 18.98 & 18.88 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 DBS Group |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 19.50 | 10/07/2017 | 0.3 | CBJW | Macquarie Bank | DBS GROUP MBL ECW170710% | Medium risk | 8.0 % | 7.2 % | | Call | 18.00 | 03/07/2017 | 0.5 | CBDW | Macquarie Bank | DBS GROUP MBL ECW170703% | Low risk | 8.0 % | 6.0 % | | Put | 18.00 | 02/10/2017 | -0.5 | CBNW | Macquarie Bank | DBS GROUP MBL EPW171002% | Medium risk | 8.0 % | 6.7 % | | Put | 16.80 | 30/10/2017 | -0.4 | CBOW | Macquarie Bank | DBS GROUP MBL EPW171030% | Medium risk | 8.0 % | 8.6 % |
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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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