The HSIF extended the positive price action during Monday’s session, climbing 271 pts to close higher at 16,616 pts.
RHB Retail Research in a note today (Mar 12) said yesterday, the index opened at 16,345 pts.
It rose to the 16,655 pts day’s high before closing at 16,616 pts – breaching the 16,600-pt resistance mark.
In the evening, it added 84 pts and last traded at 16,700 pts.
The latest positive price action has negated the Bearish Marubozu candlestick (formed on 5 Mar) and filled the gap formed on 29 Feb.
These signals show the bulls have overpowered the bears. Meanwhile, the 20-day SMA line is moving upwards – suggesting the short-term trend is bullish.
As the index has surpassed the stop-loss point, we will change to positive trading bias.
The house closed out the short positions (initiated at 16,253 pts, ie the close of 8 Jan) after the stop-loss at 16,600 pts was breached.
Conversely, they initiate long positions at the close of 11 Mar, ie 16,616 pts.
To manage the trading risks, the initial stop-loss threshold is placed at 16,000 pts. The immediate support is at 16,000 pts, followed by 15,500 pts.
On the upside, the immediate resistance is eyed at 17,000 pts, followed by 17,500 pts.
