‘Long’ positions are being maintained on HSI futures by RHB Research.
The HSIF continued its upside movement on Monday, rising 600 points and closing stronger at 22,196 points. The index started off at 21,625 points and surged during the morning session to reach the 22,359-point intraday high. In the afternoon, it retraced on profit-taking to close at 22,196 points. During the evening session, the HSIF pulled back 181 points from the day session and last traded at 22,015 points.
Despite the selling pressure being greater during the evening session, the index managed to retain its bullish structure of “higher highs” with “higher lows”. Meanwhile, the 50-day SMA line is rounding up, which suggests the bullish set-up is getting firmer. For the immediate session, the HSIF may undergo a consolidation before it can re-test the 22,219-point immediate resistance.
The research house expects the 20-day SMA line to lend downside support. As long as the index stays above the 20,500-point support, the bullish structure is deemed as solid. At this stage, the research house is sticking to a positive bias.
Traders are advised to stay with the long positions initiated at 21,474 points or the close of 21 June. To mitigate the
downside risks, the initial stop-loss level is set at 20,500 points. The immediate support is marked at 21,000 points and then 20,500 points. On the upside, the immediate resistance is eyed at 22,219 points – 10 June’s high – and followed by the 22,800-point whole number.
