Hang Seng Index Futures (HSIF) is showing renewed bullish momentum after rebounding strongly on Monday, with RHB Investment Bank Bhd (RHB Research) maintaining its positive trading bias and advising traders to keep their long position.
RHB Research said HSIF advanced 329 points to close at 25,423 points after opening lower at 25,097 points and briefly touching an intraday low of 25,089 points.
The index subsequently reversed higher to reach a session high of 25,564 points before settling near the top of its trading range. During the evening session, HSIF shed 68 points to last trade at 25,355 points.
According to RHB Research, the bullish candlestick indicated a strong intraday recovery following a rebound from immediate support, suggesting that buying momentum has returned.
The research house noted that HSIF is now attempting to move above its 20-day simple moving average (SMA), signalling that bullish momentum is gaining traction.
The Relative Strength Index (RSI) is also trending upwards, indicating that the positive price action could continue in the coming sessions.
“If the bullish momentum follows through, the index should travel towards the 26,000-pt level,” RHB Research said.
With the bullish momentum intact, RHB Research maintained its positive trading bias and advised traders to retain the long position initiated at 24,657 points, based on the July 15 closing level.
To manage downside risks, the stop-loss threshold is set at 24,200 points.
The immediate support level is identified at 25,000 points, followed by 24,200 points. On the upside, the first resistance is pegged at 26,000 points, followed by a higher resistance level at 26,750 points.
