The HSIF renewed the buying interest yesterday, climbing 464 pts to settle at 20,022 pts. The index opened at 19,549 pts and, after briefly touching the 19,387-pt low, rebounded strongly until the end of the session – hitting the 19,387-pt day high before the close.
In the evening, however, the HSIF took profit, falling below 20,000 pts. It last traded at 19,759 pts. Yesterday’s renewed bullish momentum has firmed up its uptrend continuation pattern in the medium term. For the short term, as the index took profit to fall back below 20,000 pts, RHB expects the HSIF to remain sideways – hovering below the latter mark before propelling higher. This is supported by the RSI which is still hovering slightly below the 60% level, indicating a possible short-term sideways movement while remain bullish in the medium term.
As such, RHB says it is keeping its positive bias – unless the trailing-stop level is triggered. The investment bank asks traders to remain in the long positions initiated at 18,617 pts or 30 Nov’s close. To minimise trading risks, the trailing-stop threshold is set at 19,000 pts. The immediate support is set at 19,000 pts and followed by 18,500 pts. The first resistance stays at 20,000 pts. This is followed by 20,672 pts, which was high of 29 Aug.
