The HSIF managed to climb above the 20-day SMA line yesterday to close at 16,180 pts, as the bullish momentum picked up pace.
RHB Retail Research in a note today (Feb 7) said yesterday, the index began trading at 15,555 pts. After setting its foothold at the 15,464 pts day’s low, it progressed higher throughout the session, touching the 16,210 pts day’s high before the close.
In the evening, the bullish momentum followed through, lifting the index 94 pts higher and it last traded at 16,274 pts.
The latest price action saw the index breaking past the 16,000-pt resistance, eyeing to test the 50-day SMA line.
In the event the HSIF climbs above the medium-term SMA line, the bulls will grow stronger.
However, expect strong resistance to emerge at the 17,000-pt level.
This resistance has formed since 15 Dec 2023. As long as the index stays below the 17,000-pt level, the bearish setup is deemed intact.
At this juncture, they keep the negative trading bias.
Traders should retain the short positions initiated at 16,253 pts (the close of 8 Jan).
To minimise the trading risks, the stop-loss threshold is fixed at 17,000 pts.
After the bullish breakout, the nearest support is revised to 15,500 pts, followed by the lower support at 15,000 pts.
On the upside, the first resistance is eyed at 16,400 pts, followed by the next resistance at 17,000 pts.
