RHB Research has maintained long positions on HSI futures.
The HSIF breached the 18,000-pt psychological resistance on strong momentum, and closed at 18,324 points yesterday. The index opened at 17,623 pts, trended upwards throughout the session until it recorded the day’s high of 18,382 points before the close. In the evening, it shed 64 pts and last traded at 18,260 points. The latest bullish candlestick showed that market sentiment has become risk-on again, in tandem with the RSI trending higher above 50%. Amidst the strong momentum, it is highly possible that a follow-through price action will emerge in the sessions ahead. The bulls could test the 18,500-point immediate resistance. For now, the 50-day SMA line will act as a support point. Since the bullish momentum is in play now, no change to positive bias.
Traders should maintain the long positions initiated at 16,657 points, or the close of 7 Nov. To mitigate the downside
risks, the stop-loss has been adjusted upwards to16,000 points from 15,830 points.
The immediate support is now at 17,339 points – 14 Nov’s low – followed by 16,850 points. Conversely, the first resistance has been changed to 18,500 points, followed by 19,500 points
