RHB Research has continued to maintain “long” positions on HSI futures.
The HSIF continued to experience selling pressure yesterday, retreating 199 points to close at 21,506 points. It started Wednesday’s session at 21,688 points and fell to the day session’s low of 21,238 points before rebounding in the afternoon to close at 21,506 points. During the evening session, it dipped 17 points and last traded at 21,489 points. The latest price action confirms that strong support exists at 21,500 points. If the immediate support gives way in coming sessions, the index will retrace towards the lower support level at 21,000 points. The research house is of the view that the bulls will defend the support level near the 50-day SMA line. However, if the index manages to jump above the 22,000-point resistance, this should attract buying pressure to lift it higher. So far, both the 20-day and 50-day SMA lines are still trending higher, and the index remains above the short-term moving average line. As such, it is deemed the bullish structure as intact, despite the mild correction. The research house is sticking to its bullish bias until the stop-loss is triggered.
Traders are advised to stay with the long positions initiated at 21,474 points or the close of 21 June. To minimise downside risks, the stop-loss is placed at 21,000 points. The immediate support is still at 21,500 points, followed by the lower support at 21,000 points. Meanwhile, the immediate resistance is seen at 22,000 points, followed by 22,413 points or the high of 28 June.
