| | | | | Commentary | | The Straits Times index declined 0.13% or 4.28pts to 3224.34 (day range: 3235.97 - 3214.87) on Friday. The index is above its 20d MA (@ 3174) and above its 50d MA (@ 3156). 60% of the index constituents are above their 20D MA (vs 63% the previous session) and 63% of the shares are above their 50D MA (vs 57%). On a daily basis, the index is posting a consolidation and remains above both 20-day and 50-day moving averages, which should maintain the bullish bias. Meanwhile, the relative strength index has broken above a negative trend line with strong upward momentum. As long as 3155 holds as the key support, further upside is expected. The HSI index fell 0.84% or 207.53pts to 24476.35 (day range: 24634.28 - 24358.72) on Friday. The index is above its 20d MA (@ 24316) and above its 50d MA (@ 24141). 37% of the index constituents are above their 20D MA (vs 47% the previous session) and 53% of the shares are above their 50D MA (vs 63%). On the daily chart, the index is pulling back and is expected to test the support of its 20-day and 50-day moving averages in the coming week. And the daily relative strength index is still above its neutrality area at 50, lacking strong downward momentum. As long as the level of 24150 holds as the key support, further rise is preferred. |
| Straits Times Intraday: the upside prevails. |  | Pivot: 3210.00
Our preference: long positions above 3210.00 with targets at 3250.00 & 3265.00 in extension.
Alternative scenario: below 3210.00 look for further downside with 3180.00 & 3160.00 as targets.
Comment: the RSI lacks downward 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 | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | Medium risk | 2500.0 % | 6.8 % | | Call | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | Medium risk | 2500.0 % | 6.8 % | | Put | 3050.00 | 31/08/2017 | -0.4 | CFWW | Macquarie Bank | STI MBL EPW170831% | Medium risk | 2500.0 % | 11.2 % | | Put | 3050.00 | 31/08/2017 | -0.4 | CFWW | Macquarie Bank | STI MBL EPW170831% | Medium risk | 2500.0 % | 11.2 % |
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| Hang Seng Intraday: turning down. | | Pivot: 24630
Our preference: short positions below 24630 with targets at 24350 & 24200 in extension.
Alternative scenario: above 24630 look for further upside with 24780 & 25000 as targets.
Comment: the RSI is bearish and calls for further downside.
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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 | | Put | 24000.00 | 29/05/2017 | -0.4 | CFTW | Macquarie Bank | HSI MBL EPW170529% | High risk | 1000.0 % | 26.0 % | | Put | 24000.00 | 29/05/2017 | -0.4 | CFTW | Macquarie Bank | HSI MBL EPW170529% | High risk | 1000.0 % | 26.0 % | | Put | 23800.00 | 29/06/2017 | -0.4 | CGKW | Macquarie Bank | HSI MBL EPW170629% | High risk | 1000.0 % | 15.4 % | | Call | 23800.00 | 29/05/2017 | 0.6 | CFGW | Macquarie Bank | HSI MBL ECW170529% | Medium risk | 1000.0 % | 13.3 % | | Call | 23800.00 | 29/05/2017 | 0.6 | CFGW | Macquarie Bank | HSI MBL ECW170529% | Medium risk | 1000.0 % | 13.3 % | | Call | 24600.00 | 29/05/2017 | 0.4 | CFFW | Macquarie Bank | HSI MBL ECW170529% | High risk | 1000.0 % | 25.2 % |
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| DBS Group Intraday: bullish bias above 20.25. | | Pivot: 20.25
Our preference: long positions above 20.25 with targets at 20.65 & 20.83 in extension.
Alternative scenario: below 20.25 look for further downside with 20.10 & 19.90 as targets.
Comment: a support base at 20.25 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 DBS Group |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Call | 19.50 | 10/07/2017 | 0.6 | CBJW | Macquarie Bank | DBS GROUP MBL ECW170710% | Medium risk | 8.0 % | 9.5 % | | Call | 20.00 | 01/11/2017 | 0.5 | CBMW | Macquarie Bank | DBS GROUP MBL ECW171101% | Low risk | 8.0 % | 5.8 % | | Put | 18.00 | 02/10/2017 | -0.3 | CBNW | Macquarie Bank | DBS GROUP MBL EPW171002% | Medium risk | 8.0 % | 9.9 % | | Put | 16.80 | 30/10/2017 | -0.3 | CBOW | Macquarie Bank | DBS GROUP MBL EPW171030% | Medium risk | 8.0 % | 16.3 % |
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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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