Strong Downside Support with Bullish Impulse on HSI Futures

HKEX

Strong downside support for Hang Seng Index coupled with bullish momentum going on, RHB Research has maintained ‘long’ positions on HSI futures.

Amidst positive momentum, the HSIF climbed back above the 20-day SMA line and closed at 21,227 points. It started yesterday’s session at 20,980 points. After touching the session’s 20,933-point low, it rose to test the day’s high of 21,385 points before closing in positive territory. The latest session’s low (20,933 points) is higher than the previous session’s low of 20,892 points. The “higher low” affirms that the bulls still possess technical advantage, and that the bullish technical setup remains intact. The 50-day SMA line may curve higher if the index remains above the 20-day SMA line. Meanwhile, both moving average lines are providing downside support for the index. On the upside, a breach of the 21,758-point resistance should lift the index towards 22,219 pts. With the bullish momentum still in play, the research house is retaining its positive bias.

Traders are recommended to keep the long positions initiated at 21,474 points or the closing of 21 June. To mitigate the trading risks, the initial stop-loss is placed at 20,500 points. The immediate support is established at 20,500 points, while the lower one is set at 20,000 points. Conversely, the immediate resistance remains at 21,758 points – 13 June’s high – followed by 22,219 points.

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