Hang Seng Index Futures: Bouncing Off The 20-Day SMA Line

The HSIF extended its correction on Friday, declining 252 pts to close lower at 16,721 pts.

RHB Retail Research in a note today (Mar 18) said the index started off the session at 16,972 pts.

It plunged to the 16,558-pt day low before rebounding in the afternoon to close at 16,721 pts.

In the evening, the HSIF recouped 31 pts and last traded at 16,752 pts.

Despite the index charting a bearish body candlestick, the house observed it managing to stage a rebound from the 20-day SMA line with long lower shadow.

The price action also affirmed that the 16,600-pt level is now acting as strong support.

As long as the HSIF stays above the short-term moving average line, the bulls still possess the technical advantage.

For the immediate sessions, the index may resort to sideways movements above the immediate support.

The house hold on to the positive trading bias until the immediate support gives way.

They advise traders to retain the long positions initiated at the close of 11 Mar, ie 16,616 pts.

To minimise the trading risks, the stop-loss threshold is adjusted to 16,600 pts from 16,000 pts.

The immediate support remains unchanged at the aforementioned 16,600 pts and is followed by 16,000 pts.

On the upside, the first resistance is established at 17,251 pts – 14 Mar’s high – and followed by the higher resistance of the
18,000-pt level.

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