RHB Retail Research has reiterated its long positions on HSI futures.
The HSIF resumed its upside movement on Friday, climbing 330 points to close at 21,985 points. The index started the session at 21,652 points. After establishing the intraday low at 21,548 points, it climbed to the day’s high of 22,086 points before closing in positive territory. The index continued its positive movement during the evening session, adding 236 points. It was last traded at 22,221 points. As the session is still in progress, the bulls will attempt to close above 22,000 points.
Closing above this level will improve market sentiment and attract follow-through momentum to lift the index towards the 22,500-point resistance level. The latest bullish candlestick suggests that momentum is picking up pace again. On the downside, the 20-day SMA line will provide a buffer if the index resorts to retracement. In anticipation of a fresh “higher high” bullish candlestick, the research house has maintained the positive trading bias.
Traders should keep the long positions initiated at 18,617 points (30 Nov 2022’s close). To manage trading risks, the stop-loss threshold is set at 20,857 points.
The immediate support stays at 20,857 points – 5 Jan’s low – followed by 20,000 points. The immediate resistance remains at 22,000 points, followed by 22,500 points.
