The HSIF jumped above the 17,251-pt resistance level to close stronger at 17,342 pts – confirming a bullish setup.
RHB Retail Research in a note tody (Apr 26) said yesterday, the index opened at 17,250 pts.
It rose to the 17,471 pts day’s high before closing at 17,342 pts. In the evening, it fell 24 pts and last traded at 17,318 pts.
The RSI is trending upwards, showing the bullish momentum is gaining pace now.
Meanwhile, both the 20- and 50-day SMA lines are moving upwards – indicating the underlying trend is bullish.
Following the bullish breakout, the index may resort to consolidation.
As long as it stays above the 16,600 pts support, the bullish structure is deemed valid.
Since the index has closed above the stop-loss point, we will shift to positive trading bias.
The house closed out the short positions (initiated at 16,551 pts or the close of 19 Mar) after the stop-loss at 17,251-pt level was triggered.
Meanwhile, they initiate long positions at the close of 25 Apr, ie 17,342 pts.
To manage the downside risks, the initial stop-loss threshold is set at 16,600 pts.
The immediate support is marked at 16,600 pts and followed by 16,000 pts.
On the upside, the first resistance is pegged at 18,000 pts, followed by the higher resistance of 18,500 pts.
