The HSIF extended its upside movement on Friday, climbing 224 pts to close at 18,283 pts – strengthening its position above the 18,000-pt level.
RHB Retail Research (RHB) in a note today (Sept 23) the index began the session at 18,061 pts.
It then climbed to the 18,378-pt high before closing at 18,283 pts.
In the evening, it gave up 84 pts and was last traded at 18,199 pts.
The RSI has been pointing upwards, suggesting that bullish momentum is in play.
Riding on this momentum, the index should continue to move upwards to test the next resistance level at 18,500 pts.
Meanwhile, both the 20-day and 50-day SMA lines remain downside support levels.
If the index resorts to profit-taking, it may pull back towards 17,700 pts.
So far, the bullish momentum has not shown any signs of weakness.
Hence, RHB said they held on to the positive trading bias.
They recommended that traders hold on to the long positions initiated at the close of 19 Sep (18,059 pts).
To mitigate the trading risks, the initial stop-loss threshold is placed at 17,300 pts.
The immediate support is marked at 17,700 pts, followed by 17,300 pts.
Conversely, the nearest resistance is pegged at 18,500 pts, followed by 19,000 pts
