RHB Research has maintained ‘long’ positions on HSI futures when the bulls are gaining traction.
The HSIF extended the upside movement on Friday, and closed stronger – at 21,596 points. The index opened at 21,263 points. After established its intraday low at 21,087 points, it progressed upwards to print the day’s high of 21,693 points before registering a strong close. In the evening, the bullish momentum continued to advance by 185 points and the index closed at 21,781 points. If it stays above this level, the HSIF may move past the 22,000-point level to test the 2-month high of 22,219 points. Note that the 20-day SMA line is trending higher, which indicates that the bulls are gaining traction. Meanwhile, the 50-day SMA line also rounding upwards, providing strong downside support. A breakout above the 22,219-point level will attract a strong follow-through of buying pressure. For now, no change to positive bias.
Traders are advised to hold on to the ‘long’ positions initiated at 21,474 points, or the close of 21 June. To protect the
downside risks, the initial stop-loss is fixed at 20,500 points. The immediate support has been adjusted to 21,000 points, then 20,500 points. In the meantime, the immediate resistance is still at 21,758 (13 June’s high), followed by 22,219 points or the high of 10 June.
