The research house maintains ‘LONG’ positions on the HSI futures.
The HSIF moved higher towards the intraday high yesterday but failed to sustain – it fell sharply below the opening level. The index closed 190 pts lower at 21,235 pts during the day session. It then rebounded 176 pts during the evening session and last traded at 21,411 points.
The latest closing level has seen the HSIF struggle to sustain above the 20-day SMA line as selling pressure appeared. However, the latest session saw the positive momentum re-appearing to re-test the average line, hence solidifying the immediate support of 21,254 points. With the RSI pointing near the 50% level, the likelihood for an upside breakout remains intact. As the bullish momentum is still in play, the research house reiterates its stance on the HSI futures, that is to keep to their positive trading bias.
RHB Research also recommends traders to maintain the long positions initiated at 21,466 points or the close of 17 March’s day session. To mitigate the downside risks, the initial stop-loss threshold is placed at the 20,000-point psychological level.
The immediate support is marked at 21,254 points – 8 March’s high – and followed by 20,000 points. Meanwhile, the
immediate resistance is pegged at 22,335 points – 28 Feb’s low – and followed by 23,272 points, i.e. the low of 31 January.
