RHB Research has continued to maintain long positions on HSI futures.
The HSIF drifted lower for the fifth consecutive session to close at 17,475 pts – testing the immediate support of 17,339 pts. On Tuesday, the index opened at 17,647 pts oscillated between 17,784 pts and 17,306 pts, and closed below the opening price at 17,475 pts. In the evening, the index recouped 60 pts and last traded at 17,535 pts.
The bearish price action showed that the momentum is slowing down and a consolidation is taking place. The index may attempt to build an interim base near the immediate support. Falling below the threshold would see a fresh “lower low” and attract strong selling pressure. At this stage, the research house is still maintaining a positive bias until the immediate support is breached.
Traders should stick to the long positions initiated at 16,657 pts (7 Nov’s close). To manage the downside risks,
the stop-loss is set at 17,339 pts.
The immediate support is still at 17,339 pts – 14 Nov’s low – with the lower support at 16,850 pts. Towards the upside, the nearest resistance is still at 18,500 pts, followed by 19,500 pts.
