| | | | | Commentary | | Singapore |  | In Singapore the Straits Times index declined 0.83% or 26.9 points to 3226.78. The index is below its 20-day moving average (currently at 3362) and below its 50-day moving average (currently at 3277). 47% of the index constituents are above their 20-day moving average compared to 40% the previous session and 63% of the shares are above their 50-day moving average compared to 57%. On the daily chart, the index stays on the downside after breaking below the 50-day moving average. The RSI is located at 30s, suggesting the downside momentum for the index prices. To sum up, as long as 3360 acts as the key resistance level, the index should expect a drop to 3120 and even to 3045 in extension.
On Friday the HSI index dropped 2.5% or 562 points to 21905.29. The index is below its 20-day moving average (currently at 23777) and below its 50-day moving average (currently at 23779). 13% of the index constituents are above their 20-da y moving average compared to 11% the previous session and 34% of the shares are above their 50-day moving average compared to 27%. On a daily chart, the index posts a bearish gap, confirming the continuation of the down trend. The 20-day moving average crosses below the 50-day one. The RSI also is below the oversold level at 30. Hence, unless the resistance level at 23500 is violated, the index should drop to 21140 before sinking to 19600 in extension. |
| Straits Times ST: under pressure. | | Pivot: 3360.00
Our preference: short positions below 3360.00 with targets at 3120.00 & 3045.00 in extension.
Alternative scenario: above 3360.00 look for further upside with 3465.00 & 3525.00 as targets.
Comment: as long as 3360.00 is resistance, expect a return to 3120.00.
| | In order to leverage this directional view we have selected the following warrant: | | Strike | 3050.00 | | Expiry | 28/04/2022 | | Delta | -0.3 | | Ticker | YTCW | | Issuer | Macquarie Bank | | Name | STI MBL EPW220428 | | Conv ratio | 2500.0 | | Eff. Gearing | 13.7 | | Warrant Strategy |  |
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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 |
| Hang Seng ST: the downside prevails. | | Pivot: 23500
Our preference: short positions below 23500 with targets at 21140 & 19600 in extension.
Alternative scenario: above 23500 look for further upside with 24220 & 25060 as targets.
Comment: the RSI shows downside momentum.
| | In order to leverage this directional view we have selected the following warrant: | | Strike | 21400.00 | | Expiry | 28/04/2022 | | Delta | -0.3 | | Ticker | KAFW | | Issuer | Macquarie Bank | | Name | HSI MBL EPW220428 | | Conv ratio | 1200.0 | | Eff. Gearing | 9.0 | | Warrant Strategy | |
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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 |
 | 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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Copyright 2022 - TRADING CENTRAL | | Warrants involve risk and are not suitable for everyone. Prior to buying or selling a warrant, investors should receive appropriate training or documentation on warrants characteristics from their broker, from the Singapore Exchange or from one of the issuers. TRADING Central is not a broker-dealer. TRADING Central is not affiliated with the Singapore Exchange, the issuers of warrants mentioned in this site or their affiliates. Investors should exercise judgment and perform adequate due-diligence prior to making any investment. | | |
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The information contained in this Newsletter is obtained from sources believed to be reliable and accurate as at the date of publication. However, TRADING CENTRAL has not verified the materials, which may not be complete or accurate. Opinions, estimates and other information contained herein may be changed or withdrawn without notice. Any prices and quotes published in this Newsletter are purely indicative and for information purposes only. Indicative prices and quotes shown in this Newsletter may vary significantly from indicative prices or quotes available from other sources.
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Investment products are subject to significant investment risks, including the possible loss of the principal amount invested. Past performance of investment products is not indicative of their future performance.
The warrant issuers and their affiliates may from time to time take proprietary positions, and may have long or short positions or other interests, in the investment products. The warrant issuers and their affiliates are or may also be involved in other financial, investment and professional activities which may on occasion give rise to interests or a conflict of interests in respect of the investment products. The warrant issuers or their affiliates may make a market or appoint designated market makers to make a market for the warrants. The warrant issuers and/or the designated market makers make no representation nor can it give any assurance as to the liquidity in the trading of warrants as the warrant issuer or the designated market maker may be the only person quoting prices in the warrants.
This Newsletter is for general circulation only and is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. It does not address the specific investment objectives, financial situation or particular needs of any person. Advice should be sought from a financial adviser regarding the suitability of any investment product before investing or adopting any investment strategies. None of the parties funding the publication costs of or supporting this Newsletter (the Supporting Parties) shall be liable to any Subscriber in any way for any liability whatsoever and howsoever arising. Each of the Supporting Party shall have the right under the Contracts (Rights of Third Parties) Act 1999 to enforce its rights under this Agreement.
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