Following the bullish rebound yesterday, trailing-stop point triggered; RHB Research has initiated long positions on HSI futures.
The HSIF jumped on strong momentum yesterday, breaching the 18,000-point resistance to close stronger at 18,083 points. The index initially gapped up and started off at 17,738 points. After setting its foothold at 17,673 points, it progressed higher throughout the session, touching the 18,205-point day high before closing in positive territory. In the evening, the HSIF dipped 42 points and last traded at 18,041 points. The latest bullish candlestick has negated the Bearish Marubozu that formed on 28 September. The positive price action also charted a fresh “higher high” bullish pattern.
Amidst the strong momentum, the bulls are setting their sights on testing the 20-day SMA line. Crossing above the short-term moving average line will further improve market sentiment. As the trailing-stop has been breached, the research house has shifted over to a bullish bias.
The research house has closed out the short positions initiated at 19,391 points – 2 September’s close – after the trailing-top level at 18,000 points was triggered. Conversely, we initiate long position at the close of 5 October, i.e. 18,083 points. To manage the trading risks, the initial stop-loss threshold is set at 17,400 points.
The immediate support is adjusted to 17,400 points and followed by 17,000 points. Conversely, the immediate resistance is changed to 18,300 points and followed by 18,750 points.
