The HSIF is on track to climb towards the 20,000-pt threshold after having risen 212 pts last Friday to close at 19,542 pts, solidifying its positive momentum.
RHB Retail Research in a note today (May 20) said the index began trading at 19,343 pts and climbed strongly to an intraday high of 19,607 pts before retreating mildly at the close.
During the evening session, it jumped another 162 pts and last traded at 19,704 pts.
This strong bullish momentum suggests the bulls are still in control, likely propelling the HSIF towards the 20,000-pt mark in the near term.
However, potential profit-taking activities may occur, given that the RSI momentum indicator is at 82%, which indicates overbought territory.
RHB sees the medium-term bullish momentum remaining robust, with any upcoming pullbacks expected to be temporary.
This will be followed by a resumption of the uptrend. Amidst the bullish sentiment, they maintain their positive trading bias.
Traders should retain the long positions initiated at the close of 25 Apr or 17,342 pts.
To manage the trading risks, the stop-loss threshold is set at 18,200 pts.
The immediate support is set at 18,790 pts – 13 May’s low – and followed by the abovementioned 18,200 pts.
The immediate resistance is now at 20,000 pts and followed by the 21,000-pt level.
