‘LONG’ positions for HSI futures maintained by the research house.
The HSIF saw a pullback for the second consecutive session yesterday, retracing 289 points to settle the day session at 21,802 points – closing below 22,000 points for the first time since 29 March. It opened Thursday’s
session lower at 21,875 points. After the weak opening, it jumped to test the day session’s 22,219-point high. However, the bullish momentum was short-lived, and the index reversed to the day session’s 21,746-point low before the close. It fell another 62 points during the evening session, and was last traded at 21,740 points.
The index is attempting to form an interim base near the 21,542-point support level, and may consolidate sideways along this level. If it falls below 21,542 points, strong support should be found near the 20-day SMA line. For now, the 50-day SMA line is acting as an overhead resistance. The research house is keeping their positive trading bias until the stop-loss is triggered.
Traders are recommended to stay with the long positions initiated at 21,466 points or the close of 17 March’s day session. To manage downside risks, the stop-loss is placed at 21,202 points. The nearest support is marked at 21,542 points – 1 April’s low – followed by 21,202 points, or the low of 28 March. The first resistance is seen at 22,535 points – 04 Apr’s high – followed by 23,272 points, or the low of 31 January.
