| | | | | Commentary | | The Straits Times index fell 0.13% or 4.15pts to 3169.61 (day range: 3182.11 - 3164.54) on Thursday. The index is above its 20d MA (@ 3164) and above its 50d MA (@ 3145). 57% of the index constituents are above their 20D MA (vs 57% the previous session) and 63% of the shares are above their 50D MA (vs 63%). On a daily basis, the index has crossed above both 50-day and 20-day moving averages, and is likely to challenge its previous high. Both 20-day and 50-day moving averages should maintain the bullish bias, and the relative strength index is crossing above the neutrality area at 50, calling for further bounce as likely. As long as 3105 holds as the key support, further upside is expected. Alternatively, a break below 3105 allows for further drop to 3070 and 3025 in extension. The HSI index rose 0.49% or 120.05pts to 24698.48 (day range: 24717.44 - 24455.12) on Thursday. The index is above its 20d MA (@ 24250) and above its 50d MA (@ 24089). 72% of the index constituents are above their 20D MA (vs 74% the previous session) and 72% of the shares are above their 50D MA (vs 74%). On the daily chart, the index is surging higher and has broken above its upper Bollinger band. The 20-day moving average remains above the 50-day one, and the daily relative strength index is above its neutrality area at 50, showing further upside momentum. As long as the level of 23700 holds as the key support, further rise is preferred. |
| Straits Times Intraday: further advance. | | Pivot: 3160.00
Our preference: long positions above 3160.00 with targets at 3195.00 & 3200.00 in extension.
Alternative scenario: below 3160.00 look for further downside with 3144.00 & 3130.00 as targets.
Comment: the RSI is bullish and calls for further advance.
|
| | | | | 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% | Medium risk | 2500.0 % | 11.4 % | | Call | 3300.00 | 31/08/2017 | 0.3 | CFVW | Macquarie Bank | STI MBL ECW170831% | Medium risk | 2500.0 % | 7.9 % | | Put | 3050.00 | 31/08/2017 | -0.5 | CFWW | Macquarie Bank | STI MBL EPW170831% | Low risk | 2500.0 % | 11.1 % | | Put | 2900.00 | 30/06/2017 | -0.3 | CDMW | Macquarie Bank | STI MBL EPW170630% | High risk | 2500.0 % | 21.1 % |
|
| Hang Seng Intraday: the bias remains bullish. | | Pivot: 24480
Our preference: long positions above 24480 with targets at 24840 & 24970 in extension.
Alternative scenario: below 24480 look for further downside with 24350 & 24200 as targets.
Comment: the RSI advocates for further advance.
|
| | | | | 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 | 23800.00 | 29/05/2017 | 0.7 | CFGW | Macquarie Bank | HSI MBL ECW170529% | Low risk | 1000.0 % | 15.5 % | | Call | 23800.00 | 29/05/2017 | 0.7 | CFGW | Macquarie Bank | HSI MBL ECW170529% | Low risk | 1000.0 % | 15.5 % | | Call | 24600.00 | 29/05/2017 | 0.5 | CFFW | Macquarie Bank | HSI MBL ECW170529% | Medium risk | 1000.0 % | 22.4 % | | Put | 24000.00 | 29/05/2017 | -0.3 | CFTW | Macquarie Bank | HSI MBL EPW170529% | High risk | 1000.0 % | 18.7 % | | Put | 24000.00 | 29/05/2017 | -0.3 | CFTW | Macquarie Bank | HSI MBL EPW170529% | High risk | 1000.0 % | 18.7 % | | Put | 23800.00 | 29/06/2017 | -0.4 | CGKW | Macquarie Bank | HSI MBL EPW170629% | High risk | 1000.0 % | 17.6 % |
|
| DBS Group Intraday: the upside prevails. | | Pivot: 19.23
Our preference: long positions above 19.23 with targets at 19.42 & 19.50 in extension.
Alternative scenario: below 19.23 look for further downside with 19.13 & 19.02 as targets.
Comment: the RSI is mixed to bullish.
|
| | | | | 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% | High risk | 8.0 % | 10.4 % | | Call | 18.00 | 03/07/2017 | 0.6 | CBDW | Macquarie Bank | DBS GROUP MBL ECW170703% | Medium risk | 8.0 % | 8.0 % | | Put | 18.00 | 02/10/2017 | -0.5 | CBNW | Macquarie Bank | DBS GROUP MBL EPW171002% | Low risk | 8.0 % | 6.7 % | | Put | 16.80 | 30/10/2017 | -0.4 | CBOW | Macquarie Bank | DBS GROUP MBL EPW171030% | Medium risk | 8.0 % | 10.9 % |
|
| 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). | |
|
|
| Disclaimer | This is an investor education effort supported by SGX.
Subscribers should seek independent financial advice before making any investment decision. Each of SGX and Phillips Securities makes no representations or warranties of any kind, either express or implied, with respect to any data or information provided herein or the results to be obtained by the use thereof. Without limiting the generality of the foregoing, each of SGX and Phillips Securities expressly disclaim any and all warranties of truth, adequacy, originality, accuracy, timeliness, completeness, non-infringement, suitability, satisfactory quality, merchantability or fitness for any particular purpose or any representations or warranties arising from usage, custom or trade or by operation of law. The information herein is subject to change without notice. In no event shall any of SGX or Phillips Securities, any of their respective affiliates or any other third party involved in or related to the making or compiling of any informatio n herein (collectively, the "Involved Parties"), be liable to you, or any other person (whether in contract, tort or otherwise) for (i) any claims, demands, liabilities, losses, damages, costs, charges or expenses of any kind (whether direct, indirect or any lost revenue or profits, loss of use or anticipated savings, loss of goodwill, loss of opportunity, loss of reputation or business, any pure economic loss or other incidental, special or consequential damages) or (ii) delays, interruptions or omissions or the inability to use this newsletter and/or any information, regardless of the form of action, even if the Involved Parties have been advised of or otherwise might have anticipated the possibility of such damages and no action or claim shall be brought against any of the Involved Parties in relation to the same. To unsubscribe to this newsletter click here. |
|
| | | | | | | | | | | | | | | | | | |
