The HSIF managed to break past the 17,000-pt resistance to close at 17,125 pts – which is a 2-month high.
RHB Retail Research in a note today (Mar 13) said the index initially began Tuesday’s session at 16,615 pts.
It then climbed to the day’s high at 17,203 pts before closing at 17,125 pts.
In the evening, it declined 58 pts and last traded at 17,067 pts.
The latest bullish price action reaffirmed that the bulls are in control now.
As mentioned in the previous note, the ascending 20-day SMA line is providing support for the bullish setup.
In the event profit taking activities happen, the index may retrace towards the 20-day SMA line.
As long as the index stays above the 16,000-pt level, the bulls will have the technical advantage.
For now RHB retain the positive trading bias.
They recommend traders to maintain the long positions initiated at the close of 11 Mar, ie 16,616 pts.
To minimise the trading risks, the initial stop-loss threshold is placed at 16,000 pts.
After the bullish breakout, the immediate support is raised to 16,600 pts, followed by 16,000 pts.
Conversely, the nearest resistance is pegged at 17,500 pts, followed by 18,000 pts.
