The research house has initiated ‘LONG’ positions trading bias on the HSI futures as trailing-stop triggered.
The HSIF continued its positive rebound yesterday, adding further strong gains of 1,343 points during the day session to settle at 21,466 points – its second largest daily gain in 2022.
The index started off the day session at 20,132 pts and briefly touched the day’s low of 20,099 pts before propelling
higher towards the intraday high at 21,544 points near the close. However, the buying momentum diminished during the
evening session, with the HSIF retreating 218 points to last trade at 21,248 points.
The strong bullish momentum that printed for two consecutive sessions, ie bouncing from the recent bottom, suggests the rebound is significant and likely to continue in the coming sessions – hence the research house anticipates the HSI may be hitting the next resistance of 22,335 points. Since the trailing-stop has been triggered, their shift to a positive trading bias from a ‘SHORT’ position.
The research house closed out their short positions, initiated at 24,323 pts, or the closing level of 18 Feb’s day session, after the trailing-stop at 21,254 pts was triggered.
Conversely, they initiate long positions at the closing level of 17 March at 21,466 points. To mitigate the trading risks, the initial stop-loss is set at the 20,000-point threshold. The immediate support is revised to 21,254 points – 8 March’s high, followed by 20,000 points. Conversely, the nearest resistance is now pegged at 22,335 points, which was 28 February’s low, and then 25,244 points or 21 January’s high.
