RHB Retail Research has maintained long positions on HSI futures.
The HSIF closed 2022 at 19,915 points, just below the 20,000-point psychological mark. Last Friday, the index opened at 19,840 points, and climbed towards the day’s high of 20,180 points. However, the bullish momentum was short-lived, and the index pulled back in the afternoon and closed the day session at 19,915 points.
In the evening, the HSIF tracked the bearish sentiment of its peers, retraced 207 points and last traded at 19,708 points. At this juncture, the index is still above the 20-day SMA line. However, the RSI is turning lower – which points to a weakening momentum.
In the event that selling pressure remains put, the index may retreat to test the 19,000-point support. In the coming sessions, the index may consolidate sideways and stay above the 19,000-point support. Breaching the support would see a fresh “lower low” and negate the bullish setup. The research house will maintain a bullish trading bias until the stop-loss is triggered.
Traders should stick to the long positions initiated at 18,617 points (30 Nov’s close). To minimise the trading risks, the stop-loss is pegged at 19,000 points.
The immediate support is at 19,528 points (29 Dec’s low), followed by 19,000 points. Conversely, the first resistance is kept at 20,672 points (29 Aug’s high), followed by 22,000 points.
