The HSIF saw fresh buying pressure last Friday, climbing 893 pts to close at 20,920 pts.
RHB Retail Research (RHB) in a note today (Sept 39) said the index started trading at 20,122 pts.
After the strong opening, it progressed higher throughout the session, hitting the 20,997-pt session high before closing at 20,920 pts.
In the evening, it fell 10 pts and was last traded at 20,910 pts.
The latest “higher high” bullish candlestick showed that market sentiment remains risk-on.
The RSI is still pointing upwards, suggesting that bullish momentum is strong, and bullish price action is likely to follow through in the coming sessions.
The bulls are eyeing the 21,000-pt resistance level to continue its upside movement.
If the index resorts to profit-taking, it may pull back towards the 20-day SMA line, and find support near 19,200 pts.
As the momentum is bullish and the price action is not showing signs of weakness, RHB maintain the positive trading bias.
Traders should hold on to the long positions initiated at the close of 19 Sep (18,059 pts).
To manage the trading risks, the stop-loss is set at 19,200 pts.
The nearest support is marked at 19,200 pts, followed by 18,500 pts.
The immediate resistance is pegged at 21,000 pts,
followed by 22,000 pts.
