Riding on the strong momentum, the HSIF climbed above the 20,000 pts resistance to close stronger at 20,203 pts yesterday.
RHB Retail Research, in a note today (Aug 1), said after opening at 19,981 pts, the index rose to the 20,421 pts day high before closing at 20,203 pts. In the evening, the bullish momentum lifted the index 145 pts and it last traded at 20,348 pts.
The latest price action saw a fresh “higher high”, affirming strong bullish momentum is in play.
As the RSI continues pointing higher, RHB expects a follow-through of positive price action to test the 20,800 pts immediate resistance.
Breaching the immediate resistance will open the door for further upside movement. For now, the 20,000-pt level will act as the immediate support. Since the bullish setup is getting firmer, RHB will stick to the positive trading bias.
RHB advises traders to hold on long positions initiated at 19,672 pts or the close of 27 Jul. To manage the trading risks, the stop-loss threshold is revised higher to 19,250 pts from 18,861 pts.
The immediate support is revised higher to 20,000 pts, followed by 19,250 pts. Meanwhile, the immediate resistance is set at 20,800 pts, followed by 22,000 pts.
