RHB Investment Bank Bhd (RHB Research) has turned positive on the Hang Seng Index Futures (HSIF) after the benchmark staged a bullish breakout above the key 24,500-point resistance, signalling the potential for further upside.
The research house said the HSIF closed at 24,657 points on Wednesday after climbing from an opening level of 24,360 points. The index touched an intraday low of 24,317 points before rallying to a high of 24,770 points. During the evening session, it added another 176 points to trade at 24,829 points.
According to RHB Research, the breakout above 24,500 points confirms strong bullish momentum, supported by the Relative Strength Index (RSI), which continues to trend above the 50% threshold.
Following the move, the research house shifted from a bearish to a bullish trading bias after its stop-loss on a previous short position was triggered.
RHB Research said it had exited its short position initiated at 26,367 points, the closing level on Feb 26, after the stop-loss at 24,500 points was activated. It has now initiated a long position based on the July 15 closing level, with a stop-loss set at 22,500 points to manage downside risk.
The brokerage expects any near-term profit-taking to find immediate support at 23,500 points, followed by stronger support at 22,500 points.
On the upside, RHB Research sees the next resistance level at 25,300 points, with a further target at 26,000 points if bullish momentum remains intact.
It added that the successful breakout has placed buyers firmly in control, improving the technical outlook for the Hang Seng Index Futures in the near term.
