RHB Research has retained its long positions on HSI futures.
The HSIF bounced off the 17,339-point support to close at 17,561 points yesterday as it struggled to stay above the stop-loss threshold. The index began trading at 17,456 points. It then moved within the tight range of 17,662 points and 17,386 points before the close. In the evening, the HSIF climbed 86 pts and last traded at 17,646 points. The narrow range showed that the momentum continues to slow down while both bulls and bears shared equal strength. Despite the momentum becoming weaker, the index still stayed above the 50-day SMA line.
As such, the bullish setup is deemed as still intact. In the event the HSIF breaches below the 17,339-point support, there is a high possibility that it will also correct below the 50-day SMA line. Before the bearish breakout happens, the research house is retaining the positive bias.
Traders are advised to retain the long positions initiated at 16,657 points or 7 Nov’s close. To minimise the downside
risks, the trailing-stop threshold is fixed at 17,339 points.
The immediate support still sticks at 17,339 points – 14 Nov’s low – and is followed by 16,850 pts. On the flip side, the
first resistance remains unchanged at 18,500 pts, followed by 19,500 pts.
