RHB Research is giving HSI futures “long” positions attributed to its strong rebound last Thursday.
The HSIF is eyeing to extend its counter-trend rebound last Friday, adding 209 points to close at 20,126 points – as it firms up above the 20-day SMA line. After a strong bullish session on Thursday, the index started off Friday’s session stronger at 19,914 points. On the back of strong momentum, the index rose to the day’s high of 20,239 points before the close. Meanwhile, volatility surged during the evening session. The index jumped to the session’s high of 20,672 points before paring intra-session gains to close the evening session at 20,175 points. The latest price action in the evening session affirmed 20,660 points and 20,200 points as strong resistances. In coming sessions, the index should stage a fresh attempt to cross the 20,200-point immediate resistance. Breaching the immediate threshold will weaken the Bearish Marubozu formed on 29 July. For now, the research house continues to hold on to its positive bias.
Traders are advised to maintain long positions initiated at 20,143 points, or the close of 25 August’s extended session. To manage trading risks, the initial stop-loss is placed at 19,455 points.
The immediate support is kept at 19,455 points – 3 Aug’s low – followed by 19,063 points, or the low of 10 May. Conversely,
the immediate resistance is eyed at 20,200 points, followed by 20,660 points, or the high of 29 July.
