Bullish momentum on the HSIF increased on Wednesday, and lifted the index by 237 pts to a close at 16,492 pts.
RHB Retail Research in a note today (Feb 22) said it opened at 16,255 pts, then rose to the day’s high of 16,779 pts before the close, thereby surpassing the 16,400-pt resistance.
In the evening, it fell 45 pts and last traded at 16,447 pts.
After the breakout above the 16,400-pt level, the bulls are setting their sights on the 17,000-pt level.
Both the 20- and 50-day SMA lines are acting as support now.
The RSI is rounding upwards, indicating that the positive price action will be extended in the sessions ahead.
At this juncture, we will maintain a bearish trading bias until the 17,000-pt resistance is breached.
Traders should stick to the short positions initiated at 16,253 pts (the close of 8 Jan). To manage the trading risks, the stop-loss is set at 17,000 pts.
After the breakout, the immediate support has been revised to 16,200 pts, followed by 15,500 pts. WAords the upside, the immediate resistance is pegged at 17,000 pts, followed by 18,000 pts.
