The bulls continued to charge hard last Friday, and led the HSIF to climb 85 pts before closing at 22,665 pts – the index may cross above the 23,000-pt level.
The index began Friday’s session at 22,572 pts, then rose to print the day’s high of 22,687 pts before closing. In the evening, it dipped 5 pts and last traded at 22,660 pts.
RHB Retail Research stated the latest positive price action shows that the bullish momentum is still underway and growing stronger, as the RSI pushed past the 70% level. Although the RSI is in overbought territory now, the index has yet to show any sign of fatigue. As the bulls continue to lead, traders can expect the index to test the nearest resistance at 23,000-pt level.
Breaching the threshold would trigger a follow-through momentum towards 23,500-pt resistance. For now, since the bulls are still in the driver’s seat, we are making no change to our positive trading bias.
Traders should remain in the long positions initiated at 18,617 pts (30 Nov 2022’s close). To manage the downside risks, the trailing stop has been adjusted upwards to 22,000 pts from 20,857 pts.
The immediate support is at 22,000 pts, followed by 20,857 pts or the low of 5 Jan. Conversely, the immediate resistance is pegged at 23,000 pts, followed by 23,500 pts.