Riding on renewed momentum, the HSIF managed to cross above the 50-day SMA line to close higher at 16,352 pts.
RHB Retail Research in a note today (Feb 19) said the index started off Friday’s session at 15,984 pts and rose to the 16,428-pt high before the close.
In the evening, it added 22 pts and was last traded at 16,374 pts.
The technical setup has improved after the index climbed above both the 20-day and 50-day SMA lines.
The bulls are setting their sights on the 16,400-pt immediate resistance level.
Moving above this immediate threshold would further improve market sentiment.
Despite the index charting “higher highs”, it may face strong resistance at the 17,000-pt level.
As long as it stays below this threshold, the bears will have the upper hand.
They hold on to the negative trading bias until the 17,000-pt resistance level is breached.
Traders are advised to retain the short positions initiated at 16,253 pts (the close of 8 Jan). To mitigate trading risks, the stop-loss is placed at 17,000 pts.
The nearest support is marked at 15,500 pts, followed by 15,000 pts. Conversely, the nearest resistance is pegged at 16,400 pts, followed by 17,000 pts.
