The HSIF bounced off the 20-day SMA line during Monday’s session, climbing 276 pts to close at 17,765 pts. The index started yesterday’s session at 17,491 pts. It jumped to the 17,823 pts day’s high before closing at 17,765 pts.
RHB Retail Research market Dateline said today (Nov 21) that in the evening, the positive momentum followed through, lifting the index by 178 pts and it last traded at 17,943 pts. The latest price action suggests the bullish momentum is picking up pace again.
As mentioned in the previous note, the bulls will possess the technical advantage should the index stay above the 20-day SMA line.
Meanwhile, we observed the 20-day SMA line is trending higher – suggesting the short-term trend remains bullish.
The bullish setup is deemed intact if the index continues trading above the 17,000-pt level. For now, RHB keeps to their positive trading bias.
RHB recommends traders to hold on long positions initiated at 17,994 pts or the close of 6 Nov.
To minimise the downside risks, the stop-loss threshold is placed at 17,000 pts. The immediate support is marked at 17,404 pts – the low of 15 Nov – and followed by 17,000 pts.
On the upside, the immediate resistance is pegged at 18,000 pts, followed by 18,500 pts.
