The HSIF broke past the 18,500-pt resistance level to close at 18,524 pts.
RHB Retail Research in a note today (May 7) said it started Monday’s session at 18,413 pts.
It then printed the intraday low at 18,334 pts and rose to the intraday high of 18,694 pts before closing at 18,524 pts.
In the evening, it added 17 pts and was last traded at 18,541 pts.
The latest bullish breakout saw the formation of a fresh “higher high” candlestick, which strengthened the bullish technical setup.
However, the RSI is approaching the overbought level, suggesting the risk of profit-taking ahead.
If the index resorts to a correction, it may pull back towards the 17,600-pt support level.
Conversely, an extension of the bullish setup would see the index travel towards the next resistance at 20,000 pts.
As the technical setup remains bullish, RHB holds on to the positive trading bias.
They recommend traders retain the long positions initiated at the close of 25 Apr (17,342 pts).
To manage trading risks, the stop-loss is adjusted to 17,600 pts from 17,200 pts.
The immediate support is revised upwards to 17,600 pts, followed by 17,200 pts.
Meanwhile, the immediate resistance is revised to 20,000 pts, followed by the higher resistance at 21,000 pts.
