The HSIF rose 373 pts on Wednesday to close at 17,250 pts, as it looks to break past the 17,251-pt resistance level.
RHB Retail Research in a note today (Apr 25) said the index began trading at 16,875 pts. It then rose to the day’s high of 17,256 pts before closing at 17,250 pts.
The house observed that the 20-day SMA line is rounding upwards, showing that the short-term trend is bullish.
The RSI is also pointing upwards, suggesting that positive price action will follow through in the next session, leading to a bullish breakout at the 17,251-pt resistance level.
On the downside, both the 20-day and 50-day SMA lines are acting as support levels.
Until a bullish breakout takes place, they will maintain the negative trading bias.
Traders should retain the short positions initiated at 16,551 pts (the close of 19 Mar).
To minimise the trading risks, the initial stop-loss is set at 17,251 pts.
The immediate support is revised to 16,600 pts, followed by 16,000 pts.
The nearest resistance remains at 17,251 pts (the high of 14 Mar), followed by the higher resistance level of 18,000 pts.
