RHB Investment Bank Bhd (RHB Research) is maintaining its long position on Hang Seng Index Futures (HSIF), with the index poised to test the 26,750-point level after extending its rally on Monday.
RHB Research said HSIF tested the immediate 26,000-point resistance before closing higher at 25,996 points, reinforcing its bullish setup.
The index opened at 25,953 points and initially dipped to an intraday low of 25,791 points before climbing to a high of 26,155 points. It subsequently settled near the upper end of the day’s range with a bullish candlestick.
During the evening session, HSIF pulled back 15 points to last trade at 25,981 points.
RHB Research said a breakout above the 26,000-point resistance would confirm that the bulls remain firmly in control. Under the current bullish structure, the index is expected to continue forming higher highs and higher lows.
The research house said the next upside target is the 26,750-point resistance, while the rising 20-day and 50-day simple moving average lines continue to provide support for the uptrend.
“We maintain our positive trading bias, in line with the prevailing bullish tone,” RHB Research said.
The research house recommended that traders maintain the long position initiated at 24,657 points based on the July 15 close.
For risk management, RHB Research placed the stop-loss level at 23,500 points.
The immediate support level is at 24,200 points, followed by 23,500 points. On the upside, resistance stands at 26,000 points before the higher target of 26,750 points.
Overall, RHB Research expects HSIF’s bullish momentum to remain intact as long as the index holds above its key support levels.
