The HSIF continued to move up yesterday amid positive sentiment, breaching the 21,400-point resistance to close at 21,474 points, RHB Research said
The index began the session at 21,230 points and touched the day session’s 21,081-point low before jumping in the afternoon to test the session’s 21,545-point high. In the evening, it retreated 15 points and last traded at 21,459 points.
The latest bullish candlestick managed to reactivate the Bullish Crossover of the 20-day and 50-day SMA lines.
It said that as long as the index continues to trade above the 20-day SMA line, the 50-day SMA line may move higher in the coming sessions.
Once the medium-term moving average line rounds up, RHB Research said that the technical setup will improve. As bullish momentum has breached the stop-loss, we shift to a positive bias.
We closed out the short positions initiated at 20,598 points, or the closing of 13 Jun’s evening session, after the stoploss at 21,400 points was triggered.
Conversely, RHB said that it initiate long positions at the close of 21 Jun (21,474 pts). To mitigate downside risks, the initial stop-loss is set at 20,400 points. The immediate support is established at 20,500 points, followed by the lower one at 20,000 points. On the upside, the first resistance is eyed at 21,758 points – 13 Jun’s high – followed by 22,219 points.
