The Hang Seng Index Futures (HSIF) began the week on a strong note, breaking through the key 21,000-point level on Monday and closing higher at 21,278 points. This bullish breakout reinforced the positive technical setup, indicating strong upward momentum for the immediate sessions, as cited by RHB Research in their report today.
Trading commenced at 20,924 points before surging to an intraday high of 21,593 points. Although the index later gave up 510 points in the evening session, settling at 20,768 points, the overall trend remains bullish. Analysts believe the recent breakout suggests that the bullish momentum is likely to continue, with a strong possibility of the index extending gains above the 21,000-point mark in the coming days.
Despite the evening’s bearish candlestick pattern, technical indicators such as the 20- and 50-day simple moving averages (SMA) are turning higher, signalling a continuation of the upward trend. Analysts expect the bulls to maintain control and push the index higher, provided the 21,000-point level holds.
However, should selling pressure increase, the immediate support level is expected at 20,000 points. Traders are encouraged to retain their long positions, with stop-loss orders recommended at 19,200 points to mitigate risk. On the upside, the index faces immediate resistance at 22,000 points, with a further target set at 23,000 points.
