Yesterday the HSIF failed to extend its bullish momentum, retreating 383 points to settle the day session at 22,091 points. After the holiday break, the index started off with cautious sentiment, gapping down and
opening weaker at 22,244 points. It then whipsawed between 22,285 points and 21,997 points before it closed in negative territory. Weaknesses continued to be seen during the evening session, where the HSIF fell 102 points and last traded at 21,989 points.
The recent rebound that started off from 21,202 points is due for a consolidation now, and the index may pull back in the coming sessions to re-test the 21,542- and 21,202-point supports. To maintain its bullish posture, the HSIF should continue to stay above the 20-day SMA line. The research house is retaining their positive trading bias until the stop-loss is breached.
However, the research house suggests that traders should keep 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 fixed at 21,202 points. The immediate support is revised to 21,542 points – 1 April’s low – and followed by 21,202 points, i.e. the low of 28 March. Conversely, the first resistance is now pegged at 22,535 points – 4 April’s high – and followed by 23,272 points, which was the low of 31 January.
The research house continues to maintain ‘LONG’ positions on the futures of HSI.
