The HSIF extended the upside movement during Friday’s session, rising 338 pts to close higher at 17,680 pts – firming up its position above the 16,600 pts support.
The index initially began trading at 17,342 pts.
It climbed to the 17,784 pts day’s high before closing at 17,680 pts.
In the evening, it gave up 59 pts and last traded at 17,621 pts.
They observed the index charting a fifth consecutive bullish candlestick.
This series of “higher high” candlesticks suggests the bullish momentum is strong.
The index has yet to show weakness on price action.
Riding on the momentum, the HSIF should test the 18,000-pt major resistance mark.
Breaching this resistance will further solidify the bullish setup.
Meanwhile, both the 20- and 50-day SMA lines are providing downside support should the index resort to profit-takings after a strong rally.
Since the bullish momentum is still in play, we will stick to positive trading bias.
They recommend traders to maintain the long positions initiated at the close of 25 Apr, ie 17,342 pts.
To manage the trading risks, the initial stop-loss threshold is fixed at 16,600 pts.
The immediate support is marked at 16,600 pts, followed by 16,000 pts.
Meanwhile, the first resistance is eyed at 18,000 pts, followed by the higher resistance of 18,500 pts.
