However, as Sea launches its digital bank, and gets regulated by the Monetary Authority of Singapore, it may start to trade at valuations similar to DBS Group Holdings, except that DBS is immensely profitable, and Sea is not.
The STI’s support stays at the 200-day moving average, and if this is breached, the signal is a negative one. Resistance for rebounds is likely to appear in the area between the 100-day moving average at 3,147 and the 50-day moving average at 3,134.
The Hang Seng Index broke below its 200-day moving average -currently at 27,978- in early July and remains entrenched beneath it. The 50- and 100-day moving averages have made a negative cross. On the flip side, ADX is falling, an indication of a sideways trend and hence this may leave the HSI rangebound. On Sept 2, the HSI rose to 26,090 before easing.
On Aug 27, it appeared that resistance should be set at 27,000, but this level could be lowered to 26,090 as this could turn out to be the top of a sideways range. Support is at 24,748 initially, a low made on July 27, and then at 24,581, a low made on Aug 20. A break below these levels would indicate a downside of 23,512.
