“Long” positions being maintained by RHB Research on Hang Seng Index futures.
The HSIF managed to fend off the selling pressure yesterday, rebounding to close above the 20-day SMA line and keeping its bullish structure intact. The index experienced strong selling pressure in the initial stages. After opening at 21,500 points, it fell to the 21,216-point day low. From there, it staged a strong rebound, climbing towards the 21,724-point day high before closing at 21,709 points. During the evening session, amidst the renewed momentum, the HSIF scaled higher and last traded at 21,977 points. The latest price action saw the 20-day SMA line providing strong support. With this latest rebound, the index remains on track with its upside trajectory, eyeing to test the 22,000-point immediate resistance. Breaching this immediate threshold should improve sentiment and lift the HSIF to test the recent high at 22,413 points. Meanwhile, as the RSI is rounding up again, it is expected to see a follow-through of positive momentum in the immediate session. For now, bullish bias is retained.
Traders should hold on to the long positions initiated at 21,474 points or the close of 21 June. To manage the trading risks,
the stop-loss threshold is fixed at 21,000 points. The immediate support remains at 21,500 points, followed by the lower support at 21,000 points. Conversely, the nearest resistance is eyed at 22,000 points and followed by 22,413 points, which was the high of 28 June.
