The HSIF climbed above the 20-day SMA line, rising 356 pts to close stronger at 16,877 pts.
RHB Retail Research in a note today (Apr 24) said on Tuesday, the index opened at 16,524 pts.
It formed an intraday low at 16,463 pts then climbed to the day’s high of 16,879 pts.
In the evening, it added 48 pts and last traded at 16,925 pts – firming its position above the 20-day SMA line.
The latest price action, coupled with the RSI rounding upwards, indicates that the bullish momentum is picking up pace again.
Meanwhile, the index is trading above the 20-day SMA line, which shows that the bulls are growing stronger.
Despite the index showing signs of bullishness, the 17,251-pt resistance remains intact.
Expect strong selling pressure to emerge at this resistance level.
They will maintain a negative trading bias until the index closes above the 17,251-pt resistance.
Traders should hold on to the short positions initiated at 16,551 pts (the close of 19 Mar).
To manage the trading risks, the initial stop-loss is fixed at 17,251 pts.
The immediate support is at 16,000 pts, followed by an unchanged lower support point of 15,500 pts.
The first resistance has been revised to 17,251 pts (the high of 14 Mar) followed by a higher resistance level of 18,000 pts.
