RHB Research has maintained long positions on HSI futures.
The HSIF pulled back for the fourth consecutive session, retracing 329 points to close at 17,664 points. Yesterday, the index began trading at 18,020 points. At one point in the morning, it fell sharply towards the 17,395-pt day low before rebounding and moving sideways. It then closed at 17,664 points and charted a long lower shadow. In the evening, it retreated 57 points and last traded at 17,607 points. The price action shows that the index is respecting the 17,339-point support. With the index approaching the 50-day SMA line, buying pressure has emerged. As long as the index is able to stay above the 50-day SMA line, we regard the bullish setup as remaining intact. For the coming sessions, the index should continue to consolidate above the moving average line until momentum picks up again. The research house still retains our positive bias but adjust the stop-loss higher.
Traders should keep the long positions initiated at 16,657 points, or the close of 7 Nov. To minimise the downside risks, the stop-loss is revised to 17,339 points from 16,850 points.
The immediate support remains unchanged at 17,339 points – 14 Nov’s low – with the lower one at 16,850 points. Towards the upside, the first resistance is kept at 18,500 points, followed by 19,500 points.
