The HSIF extended its upside movement on Friday, rising 229 pts to close at 17,950 pts.
RHB Retail Research (RHB) in a note today (Sept 2) said the index started Friday’s session 17,724 pts.
It rose to the day’s high of 18,159 pts and closed at 17,950 pts, printing a long bullish candlestick.
However, in the evening, it gave up 165 pts and was last traded at 17,785 pts.
The bullish price action reaffirmed that the bulls are in control.
This, coupled with the rising RSI, indicates that a bullish breakout is likely in the coming sessions.
If there is a breakout, the index may extend its bullish trajectory towards the higher resistance level at 18,500 pts.
The 20-day SMA line continued moving upwards, showing that the short-term trend is bullish.
Based on the bullish momentum, they maintained the positive trading bias.
Traders should keep the long positions initiated at 17,608 pts (the close of 19 Aug).
To manage the trading risks, the stop-loss is placed at 17,250 pts.
The nearest support is marked at 17,250 pts, followed by 17,000 pts.
On the other hand, the first resistance is located at 18,000 pts, followed by 18,500 pts.
