RHB Research has continued to maintain long positions on HSI futures.
The HSIF’s bullish momentum failed to follow through on Thursday as the index reverted to a sideways consolidation mode. It opened at 18,080 points, then whipsawed between 18,164 points and 17,866 points before closing at 17,995 points. In the evening session, the index dipped 97 points and last traded at 17,898 points. The price action showed that the index took a breather after a sharp rally on Wednesday. In the sessions ahead, it may be moving sideways between the 18,300-point resistance and 17,400-point support points. The RSI is also trending below the 50% mark, which points to a neutral momentum. Post consolidation, the index should make another attempt to cross the 20-day SMA line. Breaching the short-term moving average line would see the extension of the counter-trend rebound. For now, the research house maintains a bullish bias.
Traders are advised to maintain the long positions initiated at 18,083 points or the close of 5 October. To mitigate the trading risks, the initial stop-loss is at 17,400 points.
The immediate support is marked at 17,400 points, followed by 17,000 points. Meanwhile, the immediate resistance is pegged at 18,300 pts, followed by 18,750 points.
