RHB Retail Research has maintained long positions on HSI futures.
The HSIF faced mild selling pressure during the day session on Friday, retracing 26 points to close at 18,770 points. However, during the evening session, sentiment turned bullish again, lifting the index by 410 points. It was last traded at 19,180 points. The latest positive price action reaffirms that the bulls are still in the driver’s seat.
Riding on the renewed momentum, the bulls are setting their sights on the 19,296-point resistance level and the higher resistance level at 20,000 pts. Meanwhile, we observed that both the 20-day and 50-day SMA lines are trending higher, strengthening the bullish setup. If the index retraces on profit-taking, we expect the 18,000-point level to provide strong support. At this stage, we hold on to our bullish bias.
Traders should keep the long positions initiated at 18,617 points (30 Nov’s close). To manage downside risks, the initial stop-loss is placed at 17,358 pts.
The immediate support is established at 18,000 points, followed by 17,358 points, or the low of 29 Nov. On the upside, the nearest resistance is at 19,296 points – 1 Dec’s high – and the next resistance is pegged at the 20,000-point round figure.
