The HSIF resumed upside movement with strong momentum yesterday, breaking past the 20,000-pt resistance level to close at 20,028 pts.
RHB Retail Research (RHB) in a note today (Sept 27) said it began trading at 19,203 pts.
After establishing the intraday low at 19,147 pts, it progressed higher throughout the session, hitting the intraday high of 20,028 pts at the close.
In the evening, it added 548 pts and was last traded at 20,575 pts.
The positive price action showed that market sentiment has become risk-on again.
The RSI is pointing upwards, showing that strong bullish momentum is in play.
They expected the positive price action to follow through in the next session.
If the index climbs above the 21,000-pt resistance, the technical setup will be improved.
Meanwhile, RHB expected a support level to be formed at 19,200 pts.
It will act as a buffer if the index resorts to profit-taking.
As the bulls are still in control, RHB said they keep the positive trading bias.
Traders are recommended to retain the long positions initiated at the close of 19 Sep (18,059 pts).
To minimise the trading risks, the stop-loss is revised to 19,200 pts from 18,500 pts.
The immediate support is adjusted to 19,200 pts, followed by 18,500 pts.
On the upside, the first resistance is at 21,000 pts, followed by 22,000 pts.
