HSI Futures Breaching 19,000 Point Level, Hit 3-Month High

RHB Retail Research has reiterated its long positions on HSI futures.

The HSIF extended its rally on Monday, rising 760 points to close stronger at 19,530 points. The index initially started off the session at 18,780 points, then rose towards the day’s high at 19,606 points before the close. In the evening, it retraced 407 points and last traded at 19,123 points. The latest bullish price action showed the bulls have overpowered the bears.

With the momentum is getting stronger, the index should see a follow-through price action to
test the 20,000-point psychological resistance. Breaching the threshold would lift the index towards the 20,672-point level. In the event the index resorts to profit taking activities, it may pull back towards the 20-day SMA line. As of now, the index’s upward movement does not show any sign of weakness yet. As such, no change to bullish bias.

Traders should hold on to the long positions initiated at 18,617 points (30 Nov’s close). To protect against the downside risks, the stop-loss is adjusted to 18,000 points from 17,358 points.

The immediate support has been changed to 18,500 points, followed by 18,000 points. Conversely, the first resistance is revised to 20,000 points, and then 20,672 points, or the high of 29 Aug.

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