The research has once again reiterated its ‘LONG’ call on the HSI futures positions.
The HSIF managed to retain its position above the immediate support level, despite facing selling pressure. On Friday, the index opened at 21,806 points and fell to the day’s low of 21,559 points on profit taking activity. Buying pressure then lifted the index to the day’s 21,949-point high before closing at 21,930 points. In the evening, the index dipped 53 points, and was last traded at 21,877 points. The latest candlestick’s long lower shadow reaffirmed that the 21,542-point level is providing immediate support.
It is observed that the 20-day SMA line is trending higher and strengthening the immediate support. A breach of the moving average line or immediate threshold would negate the bullish setup and open the door for downside correction. However, if the index climbs above the 22,000-point resistance, market sentiment would improve. The research house is holding on to their positive trading bias until the stop-loss is breached.
Traders are advised to stay with the long positions initiated at 21,466 points or the close of 17 March’s day session. For trading risk management, the stop-loss is adjusted higher to 21,542 points from 21,202 points. The immediate support is fixed at 21,542 points – 1 Aprch’s low – followed by 21,202 points, which was the low of 28 March. Meanwhile, the first resistance is pegged at 22,000 pts, followed by 22,535 pts, or the high of 4 Apr.
