The research house is holding on to its ‘LONG’ positions on the futures of Hang Seng Index (HSI).
The HSIF rebounded from the 20-day SMA line and attempted to build an interim base near the moving average line. It began Monday’s session at 21,509 points. After touching the day session’s low of 21,202 points, it rose to test the session’s 21,800-point high before closing at 21,768 points. In the evening, it climbed another 48 points and was last traded at 21,816 points. The price action showed the emergence of buying interest along the 20-day SMA line.
As long as the index continues to trade above this line, sentiment will remain positive. If it climbs above the 22,335-point resistance level, bullish momentum may accelerate towards the 23,272-point resistance. Meanwhile, the research house opined that the 20,872-point level will provide strong downside support. A positive trading bias, has been put forward by the house, until the stop-loss is breached.
The research house gives the recommendation that traders should stay with the long positions initiated at 21,466 points or the close of 17 March’s day session. To mitigate downside risks, the stop-loss is set at 20,872 points. The immediate support is set at 20,872 points (18 March’s low), followed by the 20,000-point round figure. On the upside, the nearest resistance is at 22,335 points (28 February’s low), followed by 23,272 points, or the low of 31 January.
