RHB Research has retained long positions on HSI futures.
The HSIF continued to move sideways on Thursday despite climbing 95 points to close higher at 17,656 points. Yesterday, the index began the session at 17,581 points. Initially, it jumped to touch the day’s high of 17,780 points before retracing to close at 17,656 points. In the evening, the index climbed 66 pts and last traded at 17,722 points. Observe the day session’s narrow bullish body candlestick with a long upper shadow is indication that the momentum remains weak. However, the index has still managed to stay above the 17,339-point immediate support and 50-day SMA line, hence the bullish setup is deemed intact. The index will continue to consolidate until a strong momentum emerges. As long as the index remains above the stop-loss point, the research house will keep the positive bias.
Traders are advised to retain the long positions initiated at 16,657 points (7 Nov’s close). To mitigate the downside
risks, the stop-loss is fixed at 17,339 points.
The immediate support is marked at 17,339 pts – 14 Nov’s low – with the lower support at 16,850 pts. Conversely,
the first resistance is kept pegged at 18,500 pts, followed by 19,500 pts.
