The Research House is maintaining their “LONG” positions on the Hang Seng Index futures as they see the bulls are charging ahead.
The HSIF continued its upward movement on last Friday, despite mild profit-taking activity. The index fell 41 points during the day session, before closing at 21,425 points. However, tracking its US peers’ positive performance, it advanced 685 points during the evening session, and last traded at 22,110 points. The latest closing level saw the index recoup the losses incurred since 7 March – it is now eyeing the 22,335-point immediate resistance.
A breach of the immediate threshold would attract strong buying interest, and may set a new high for March. If profit-taking
occurs, we think strong support will be seen at 21,254 points, followed by the 20,000-point psychological level. With the RSI
turning upwards, the probability of an upside breakout is now higher. As bullish momentum is in play, thus the research house is keeping their positive trading bias.
RHB Research put forward the recommendation that traders should maintain the long positions initiated at 21,466 points or the close of 17 March’s day session. To mitigate downside risks, the initial stop-loss is set at the 20,000-point psychological level.
The immediate support is marked at 21,254 points – 8 March’s high – followed by 20,000 points. Meanwhile, the immediate
resistance is pegged at 22,335 points – 28 February’s low – followed by 25,244 points or the high of 21 January.
