RHB Research has continued its optimism on HSI futures by maintaining long positions on HSI futures.
The HSIF staged a rebound on Thursday, climbing 587 points to close at 19,499 points. It started the session at 18,912 points. After setting a foothold at the 18,751-point low, it moved higher throughout the session, hitting the session’s 19,570-point high before the close. In the evening session, the index rose 97 points and was last traded at 19,596 points.
The latest price action reaffirms that the bulls are still in control. Despite mild selling pressure during Wednesday’s session, the index managed to recoup the bulk of the losses on Thursday. If momentum follows through, it may test the overhead resistance at 20,000 points. A breach of this immediate threshold will improve market sentiment. It is also observed that the 20-day SMA line continues to trend higher, and is pointing upwards – these technical signals show that the index is still trading in a bullish phase. Premised on these, RHB Retail Research keep its bullish stance.
Traders should retain the long positions initiated at 18,617 points (30 Nov’s close). To manage trading risks, the stop-loss is placed at 18,000 points.
The immediate support is marked at 18,500 points, followed by 18,000 points. Meanwhile, the nearest resistance is eyed at 20,000 points, and followed by 20,672 points (the high of 29 Aug).
