RHB Research has maintained long positions.
The HSIF momentum is decelerating as the index is undergoing consolidation. Last Friday, after opening at 18,032 pts, the index whipsawed within 18,468 pts and 17,740 pts before it closed at 17,994 pts. It then dipped 72 pts and last traded at 17,922 pts. The long upper and lower shadows showed both bulls and bears shared equal strength. However, the HSIF is still trading above the 50- and 20-day moving average lines – maintaining the bullish posture. If the momentum picks up again, the index should climb and test the 18,500-pt immediate resistance. Otherwise, it will consolidate and retrace towards the 17,339-pt support. During this consolidation phase, the research house still holds on to its positive bias until the stop-loss mark is triggered.
Traders should hold on to the long positions initiated at 16,657 pts or the close of 7 Nov. To manage the downside
risks, the stop-loss threshold is adjusted higher to 16,850 pts from 16,000 pts.
The immediate support sticks at 17,339 pts – 14 Nov’s low – with the lower support at 16,850 pts. Conversely, the
immediate resistance is still pegged at 18,500 pts and followed by 19,500 pts
