The HSIF is still posing a bullish setup after edging up 1 pt to close at 17,681 pts.
RHB Retail Research in a note today (Apr 30) said the index started yesterday’s session at 17,612 pts.
It rose to the day’s high of 17,994 pts before pulling back to close at 17,681 pts.
In the evening, it climbed 16 pts and was last traded at 17,697 pts.
The latest price action saw the 18,000-pt resistance level remaining intact.
Despite the index having yet to close above the immediate resistance, it managed to chart a “higher low”, showing that the bulls still possess the technical advantage.
As the HSIF is still trending upwards above the 20-day and 50-day SMA lines, the bullish setup is deemed valid.
Meanwhile, the RSI is still heading upwards, showing that bullish momentum is in play. As the bulls remain in control, the house keeps their positive trading bias.
RHB advises traders to retain the long positions initiated at the close of 25 Apr (17,342 pts).
To minimise the trading risks, the initial stop-loss threshold is placed at 16,600 pts.
The immediate support is at 16,600 pts, followed by 16,000 pts.
On the upside, the first resistance remains at 18,000 pts, followed by the higher resistance pegged at 18,500 pts.
