The HSIF pulled back lower on profit-taking on Thursday, declining 241 points to settle the day session at 21,990 points. The index started off the day session at 22,273 points. After testing the 22,310-point day high, it retraced to the 21,913-point day low just before mid-day. It then whipsawed sideways before closing in negative territory.
The HSIF dropped another 211 points during the evening session and last traded at 21,779 points. Following the negative
price action, 22,335 points has become a strong resistance. The index has to consolidate before it can re-test the immediate threshold. The HSIF may now retreat towards the strong support at 21,202 points. Consequently, the research house is still holding on to their positive trading bias until the stop-loss point is breached. Hence, their call on maintaining ‘LONG’ positions on the HSI futures.
However, traders are advised by the research to retain the ‘long’ positions initiated at 21,466 points or the close of 17 March’s day session. To mitigate the trading risks, the stop-loss threshold is placed at 20,872 points. The immediate support is marked at 21,202 points – 28 March’s low – and followed by the 20,872 points, i.e. the low of 18 March. Conversely, the immediate resistance is pegged at 22,335 points – 28 February’s low – and followed by 23,272 points, which was the low of 31 January.
