The HSIF continued to chart a higher high last Friday, and closed 246 pts higher, at 18,411 pts.
RHB Retail Research in a note today (May 6) said it opened at 18,163 pts, rose to the day’s high of 18,591 pts before closing at 18,411 pts.
In the evening, it gained 118 pts and last traded at 18,529 pts.
Despite the index charting a bullish candlestick, the 18,500-pt resistance is deemed as intact – since Friday’s close was below the resistance point.
However, the RSI is still pointing upwards, which indicates that the positive price action should follow through in the coming sessions.
In the event the index closes above the 18,500-pt resistance, expect fresh buying interest to lift it towards the 20,000-pt level.
Pending the bullish breakout, RHB makes no change to their positive trading bias.
They recommend that traders hold on to long positions initiated at the close of 25 Apr (17,342 pts).
To minimise trading risks, the stop-loss is set at 17,200 pts.
The immediate support is marked at 17,200 pts, followed by 16,600 pts.
Meanwhile, the immediate resistance remains at 18,500 pts, followed by the higher resistance level of 20,000 pts.
