‘LONG’ positions on Hang Seng Index Futures is being maintained by the research house.
As the HSIF printed strong buying momentum yesterday, which saw it jumping sharply to close 682 points stronger at 21,917 points during the day session. It then added another 144 points during the evening session and last traded at 22,061 pts. The latest closing level has seen the index firming up the upwards movement as it crossed above the 20-day SMA line.
The immediate-term upward movement is expected to be capped at the 22,335-point resistance level. Breaching above this will likely see the bullish momentum continuing to dominate in the medium term. Since the RSI strength is printing higher above the 50% level, hence the research house holds the opinion that there is a high probability of the HSIF breaching the immediate resistance during the latter time period. RHB Research is keeping to their positive trading bias as the counter-trend rebound remains in play.
The research house has put forward the recommendation for traders to maintain the ‘long’ positions initiated at 21,466 points, i.e. the close of 17 March’s day session. To mitigate the downside risks, the initial stop-loss threshold is placed at 20,872 points or 18 March’s low. The immediate support is marked at 20,872 points – 18 March’s low – and followed by 20,000 points. Meanwhile, the immediate resistance is pegged at 22,335 points – 28 February’s low – and followed by 23,272 points, i.e. the low of 31 January.
