Following the bullish breakout, the Hang Seng Index Futures (HSIF) charged higher to climb 110 pts and close at 19,782 pts.
RHB Retail Research, in a note today (July 31), said In the evening session, the index surged 378 pts and last traded at 20,160 pts.
However, with the evening or the Monday session still in progress, the 20,000 pts resistance is deemed intact for now.
In the event the index closes above the 20,000-pt psychological level, it will improve market sentiment and rally the index towards the 20,800 pts resistance.
With the latest fresh “higher high” showing the momentum is increasing, RHB expects a follow-through of positive price action for the coming sessions.
Although profit-taking activities are looming, the 19,250-pt level will provide strong support. As the bullish structure is getting stronger now, RHB holds on to a positive trading bias.
RHB recommends traders to maintain the long position initiated at 19,672 pts or the close of 27 Jul. To minimise the trading risks, the initial stop-loss threshold is fixed at 18,861 pts.
The immediate support is set at 19,250 pts, followed by 18,861 pts (12 July’s close). Conversely, the immediate resistance is pegged at 20,000 pts, followed by the higher resistance of 20,800 pts.
