| | | | | Commentary | | The Straits Times index rose 0.53% or 17pts to 3254.05 (day range: 3260.01 - 3239.98) on Friday. The index is above its 20d MA (@ 3229) and above its 50d MA (@ 3203). 53% of the index constituents are above their 20D MA (vs 47% the previous session) and 57% of the shares are above their 50D MA (vs 47%). Trading volume on the index was low, 31.4% below the 3 months average. Technically, trading above the 20-day moving average, the index has advanced toward the upper Bollinger band. Meanwhile, the relative strength index is still well directed above the level of 50, calling for continued upward momentum for the index. Therefore, the short-term outlook continues to be bullish, and the index should be on track to reach 3290 first. At the same time, the level of 3185 holds firmly as the key support. The HSI index fell 0.13% or 32.77pts to 26030.29 (day range: 26090.33 - 25922.68) on Friday. The index is above its 20d MA (@ 25599) and above its 50d MA (@ 24872). 77% of the index constituents are above their 20D MA (vs 84% the previous session) and 86% of the shares are above their 50D MA (vs 88%). Technically, the index has softened a bit after charging across the key 26000 level yesterday. However, it keeps posting an uptrend near to the upper Bollinger band. Also, daily technical indicators (moving averages, relative strength index) are still well directed. Therefore, the index should continue to enjoy a firm short-term bullish outlook. In case the index reaches the first upside target at 26350 , it is expected to proceed further to 27000. |
| Straits Times Intraday: further advance. |  | Pivot: 3234.00
Our preference: long positions above 3234.00 with targets at 3266.00 & 3275.00 in extension.
Alternative scenario: below 3234.00 look for further downside with 3226.00 & 3220.00 as targets.
Comment: the RSI is supported by a rising 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 | | Call | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | High risk | 2500.0 % | 7.7 % | | Call | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | High risk | 2500.0 % | 7.7 % | | Put | 3050.00 | 31/08/2017 | -0.4 | CFWW | Macquarie Bank | STI MBL EPW170831% | High risk | 2500.0 % | 18.0 % | | Put | 3050.00 | 31/08/2017 | -0.4 | CFWW | Macquarie Bank | STI MBL EPW170831% | High risk | 2500.0 % | 18.0 % |
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| Hang Seng Intraday: supported by a rising trend line. | | Pivot: 25900
Our preference: long positions above 25900 with targets at 26100 & 26250 in extension.
Alternative scenario: below 25900 look for further downside with 25800 & 25700 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 | 25800.00 | 28/07/2017 | 0.5 | CGYW | Macquarie Bank | HSI MBL ECW170728% | Medium risk | 1000.0 % | 17.9 % | | Call | 26400.00 | 30/08/2017 | 0.4 | CHLW | Macquarie Bank | HSI MBL ECW170830% | High risk | 1000.0 % | 16.5 % | | Call | 25000.00 | 28/07/2017 | 0.7 | CGRW | Macquarie Bank | HSI MBL ECW170728% | Low risk | 1000.0 % | 15.4 % | | Put | 24688.00 | 28/07/2017 | -0.3 | CHIW | Bank Vontobel | HSI VT EPW170728% | High risk | 1000.0 % | 23.1 % | | Put | 24688.00 | 28/07/2017 | -0.3 | CHIW | Bank Vontobel | HSI VT EPW170728% | High risk | 1000.0 % | 23.1 % | | Put | 24688.00 | 28/07/2017 | -0.3 | CHIW | Bank Vontobel | HSI VT EPW170728% | High risk | 1000.0 % | 23.1 % |
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| DBS Group Intraday: rebound expected. | | Pivot: 20.55
Our preference: long positions above 20.55 with targets at 20.89 & 21.02 in extension.
Alternative scenario: below 20.55 look for further downside with 20.38 & 20.30 as targets.
Comment: the RSI is mixed with a bullish bias.
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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 | 22.00 | 16/10/2017 | 0.4 | CGQW | Macquarie Bank | DBS GROUP MBL ECW171016% | Medium risk | 9.0 % | 11.4 % | | Call | 20.00 | 01/11/2017 | 0.6 | CBMW | Macquarie Bank | DBS GROUP MBL ECW171101% | Low risk | 8.0 % | 7.8 % | | Put | 19.50 | 16/10/2017 | -0.3 | CGXW | Macquarie Bank | DBS GROUP MBL EPW171016% | Medium risk | 9.0 % | 8.2 % | | Put | 19.50 | 16/10/2017 | -0.3 | CGXW | Macquarie Bank | DBS GROUP MBL EPW171016% | Medium risk | 9.0 % | 8.2 % |
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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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