RHB Retail Research has maintained long positions on HSI Futures as the bullish momentum is intact.
Despite experiencing mild profit taking, the HSIF’s upward movement has remained intact. Last Friday, the index began the session at 21,209 points. After touching the day’s high at 21,409 points, it pulled back towards the day’s low at 20,938 points before the close. In the evening, the index resumed northwards, climbing 325 points to last trade at 21,395 points. Overall, the index is maintaining its trajectory by printing a “higher high” with “higher low”.
Riding on this momentum, it should eye to test the 22,000-point psychological resistance. Crossing above the threshold will see the index ascend towards the 22,500-point resistance. Meanwhile, the 20-day SMA line is moving higher, thereby strengthening the 20,000-point support. With the bullish structure remaining intact, no changes to positive trading bias.
We advise traders to retain the long positions initiated at 18,617 points (30 Nov’s close). To control the trading risks, the stop-loss is fixed at 19,528 points.
The immediate support remains at 20,000 points, followed by 19,528 points (29 Dec’s low). Conversely, the immediate resistance is kept at 22,000 points, with the higher resistance projected at 22,500 points.
