The HSIF printed a bullish candlestick during Thursday’s session, climbing 289 pts and closing higher at 18,519 pts – eyeing to stage a bullish breakout.
RHB Retail Research in a note today (May 10) said the index began trading at 18,229 pts and rose to the 18,557 pts day’s high before closing at 18,519 pts.
In the evening, it added 123 pts and last traded at 18,642 pts.
The latest positive price action saw the index recouping the bulk of losses incurred during Tuesday and Wednesday sessions – suggesting the bulls are growing stronger now.
In the event the index breaches the 18,694-pt immediate resistance level, this will improve market sentiment and attract fresh buying interest.
The bullish momentum would lift the index towards the higher resistance at 20,000 pts.
Pending the bullish breakout, they will retain the positive trading bias.
Traders are recommended to keep the long positions initiated at the close of 25 Apr (17,342 pts).
To mitigate the trading risks, the stop-loss threshold is placed at 17,600 pts.
The immediate support is marked at 17,600 pts, followed by 17,200 pts.
On the upside, the nearest resistance is pegged at 18,694 pts – 6 May’s high – and followed by 20,000 pts.
