The HSIF bounced off the 50-day SMA line to close at 17,648 pts, keeping its bullish technical setup intact.
RHB Retail Research (RHB) in a note today (Aug 30O said the index began Thursday’s session at 17,711 pts before falling to the day’s low of 17,808 pts.
It managed to contain the selling pressure, recouping the intraday losses to close at 17,648 pts.
In the evening, it added 110 pts and was last traded at 17,758 pts.
They observed that the index is trading above the 50-day SMA line, showing that the bulls still have the technical advantage.
The RSI is also rounding upwards, indicating that bullish momentum is gaining traction again.
If the positive price action follows through, the index will climb to test the 18,000-pt resistance level.
In a bullish setup, an upside breakout is likely.
If the index resorts to profit-taking, it may find support near the 20-day SMA line.
Pending the bullish breakout, they maintained the bullish trading bias.
They recommended traders to hold on to the long positions initiated at 17,608 pts (the close of 19 Aug).
To manage the trading risks, RHB said the stop-loss is marked at 17,250 pts.
The first support is marked at 17,250 pts, followed by 17,000 pts.
On the upside, the nearest resistance is still pegged at 18,000 pts, followed by 18,500 pts.
