The HSIF surged past the 19,000-pt resistance level to close at 19,085 pts as market sentiment turned risk-on.
RHB Retail Research (RHB) in a note today (Sept 25) said it began yesterday’s session at 18,267 pts.
Market sentiment turned positive during the afternoon session, with the index jumping to the session’s 19,094-pt high before closing at 19,085 pts, printing a long bullish candlestick.
In the evening, it added 678 pts and was last traded at 19,763 pts.
The latest bullish price action has strengthened the bullish technical setup.
As expected in a bullish environment, the index staged a breakout at the 19,000-pt resistance level and charted a “higher high” closing.
The RSI is pointing upwards, showing that bullish momentum is gaining speed and should see follow-through price action.
The index is now setting its sights on the 20,000-pt resistance level.
Climbing above this psychological resistance level would open the door for further upside movement.
Based on the bullish momentum, RHB said they held on to the positive trading bias.
Additionally, they recommended that traders retain the long positions initiated at the close of 19 Sep (18,059 pts).
To minimise the trading risks, the stop-loss threshold is adjusted higher to 18,000 pts from 17,300 pts.
After the bullish breakout, the first support is revised to 18,500 pts, followed by the lower support level at 18,000 pts.
On the upside, the immediate resistance is at 20,000 pts, followed by 21,000 pts.
