| | | | | Commentary | | The Straits Times index dropped 0.47% or 15.32pts to 3219.05 (day range: 3233.05 - 3217.67) on Friday. The index is below its 20d MA (@ 3227) and above its 50d MA (@ 3186). 50% of the index constituents are above their 20D MA (vs 53% the previous session) and 47% of the shares are above their 50D MA (vs 53%). On a daily basis, the index is in a consolidation mode around its 20-day moving average, which firmly stands above the 50-day moving average. The relative strength index remains above its neutrality area at 50. Even though a continuation of the consolidation in current stage cannot be ruled out, its extent should be limited. As long as 3185 holds as the key support, further upside is expected. The HSI index was flat on Friday. The index is above its 20d MA (@ 25087) and above its 50d MA (@ 24568). 74% of the index constituents are above their 20D MA (vs 74% the previous session) and 79% of the shares are above their 50D MA (vs 77%). On the daily chart, the index remains on the upside, and is looking for a higher top. Both 20-day and 50-day moving averages should maintain the bullish bias. And the daily relative strength index is above its neutrality area at 50, showing upward momentum. As long as 24800 is support, further rise is likely. |
| Straits Times Intraday: break of a ST rising trendline support. | | Pivot: 3241.00
Our preference: short positions below 3241.00 with targets at 3210.00 & 3201.00 in extension.
Alternative scenario: above 3241.00 look for further upside with 3248.00 & 3255.00 as targets.
Comment: the RSI broke below a bullish trend line.
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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 | | Put | 3050.00 | 31/08/2017 | -0.4 | CFWW | Macquarie Bank | STI MBL EPW170831% | Medium risk | 2500.0 % | 13.9 % | | Put | 3050.00 | 31/08/2017 | -0.4 | CFWW | Macquarie Bank | STI MBL EPW170831% | Medium risk | 2500.0 % | 13.9 % | | Call | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | Medium risk | 2500.0 % | 7.6 % | | Call | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | Medium risk | 2500.0 % | 7.6 % |
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| Hang Seng Intraday: further advance. | | Pivot: 25490
Our preference: long positions above 25490 with targets at 25840 & 25980 in extension.
Alternative scenario: below 25490 look for further downside with 25310 & 25080 as targets.
Comment: the RSI is bullish and calls for further advance.
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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 | 25800.00 | 28/07/2017 | 0.4 | CGYW | Macquarie Bank | HSI MBL ECW170728% | High risk | 1000.0 % | 16.6 % | | Call | 25200.00 | 29/06/2017 | 0.6 | CGIW | Macquarie Bank | HSI MBL ECW170629% | Medium risk | 1000.0 % | 21.5 % | | Call | 25000.00 | 28/07/2017 | 0.6 | CGRW | Macquarie Bank | HSI MBL ECW170728% | Medium risk | 1000.0 % | 14.9 % | | Put | 24400.00 | 28/07/2017 | -0.3 | CGSW | Macquarie Bank | HSI MBL EPW170728% | High risk | 1000.0 % | 15.9 % | | Put | 24400.00 | 28/07/2017 | -0.3 | CGSW | Macquarie Bank | HSI MBL EPW170728% | High risk | 1000.0 % | 15.9 % | | Put | 24400.00 | 28/07/2017 | -0.3 | CGSW | Macquarie Bank | HSI MBL EPW170728% | High risk | 1000.0 % | 15.9 % |
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| DBS Group Intraday: the downside prevails. | | Pivot: 21.00
Our preference: short positions below 21.00 with targets at 20.67 & 20.50 in extension.
Alternative scenario: above 21.00 look for further upside with 21.20 & 21.30 as targets.
Comment: the RSI advocates 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 DBS Group |
| Type | Strike | Expiry | Delta | Ticker | Issuer | Name | Risk | Conv ratio | Eff. Gearing | | Put | 19.50 | 16/10/2017 | -0.3 | CGXW | Macquarie Bank | DBS GROUP MBL EPW171016% | Medium risk | 9.0 % | 7.8 % | | Put | 19.50 | 16/10/2017 | -0.3 | CGXW | Macquarie Bank | DBS GROUP MBL EPW171016% | Medium risk | 9.0 % | 7.8 % | | Call | 22.00 | 16/10/2017 | 0.4 | CGQW | Macquarie Bank | DBS GROUP MBL ECW171016% | Medium risk | 9.0 % | 10.2 % | | Call | 20.00 | 01/11/2017 | 0.6 | CBMW | Macquarie Bank | DBS GROUP MBL ECW171101% | Low risk | 8.0 % | 6.9 % |
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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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