Han Seng: Yet To Cross The 20,000-Pt Resistance

The HSIF has yet to breach the 20,000-pt resistance, although it gained 447 pts on Friday to close at 19,946 pts. That day, the index opened at 19,508 pts, then set the intraday low at 19,420 pts before trending upwards to print the intraday high of 19,994 pts.

Rhb Retail Research stated that after it charted a bullish candlestick in the day session, it ceded 249 pts in the evening and closed at 19,697 pts.

The bulls were hesitant about crossing above the 20,000-pt resistance, even though the bullish momentum is still intact. In the event the index breaks past the immediate threshold, expect the bullish momentum to accelerate towards 20,672 pts. Towards the downside, the 20-day SMA line or 18,500-pt level will provide an immediate support point. So far, the bullish setup remains valid – which compels us to maintain our bullish stance.

Traders should stick to the long positions initiated at 18,617 pts (30 Nov’s close). To minimise trading risks, the stoploss is at 18,000 pts.

The immediate support remains at 18,500 pts, followed by 18,000 pts. Conversely, the first resistance is pegged at 20,000 pts, followed by 20,672 pts or the high of 29 Aug.

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