With stop-loss triggered; RHB Research has initiated “LONG’ positions on HSI futures
The HSIF edged higher on Friday to settle the day session at 20,754 points, breaking past the 20,746-point resistance. The index started the session at 20,580 points. After dipping to the day session’s 20,498-point low, it climbed to the session’s 20,812-point high before the close – forming a Bullish Marubozu candlestick. In the evening session, it rose another 100 points and last traded at 20,854 points. The latest price action confirmed that the bulls are now in charge.
As the index has established a strong position above the 20-day SMA line, the bulls will attempt to climb above the 50-day SMA line. Meanwhile, if the index pulls back on profit-taking, it is expected expect strong support near 20,400 pts. The RSI indicator has crossed above the 50% threshold, showing bullish momentum is underway. As the index has broken past the stop-loss, the research house has shifted to a positive bias.
Hence, the research house has closed out the ‘short’ positions initiated at 21,129 points (11 April’s close) after the stop-loss at 20,746 points was triggered. While initiates ‘LONG’ positions at the close of 27 May, or 20,754 points. To manage downside risks, the initial stop-loss is set at 19,650 pts. The immediate support is adjusted to 20,400 points, followed by 19,650 points. On the other hand, the immediate resistance is eyed at 21,216 points – 5 May’s high – followed by 21,595 pts, or the high of 14 April.
