Hang Seng Index Futures (HSIF) maintained its bullish posture on Wednesday as improving momentum and a firm position above its 50-day simple moving average (SMA) kept the index on track to challenge the 26,000-point resistance, according to RHB Investment Bank Bhd (RHB Research).
RHB Research said the HSIF extended its upward trajectory, rising 18 points to close at 24,459 points. It opened at 25,451 points, slipped to an intraday low of 25,252 points before rebounding to a high of 25,528 points.
Despite some selling pressure, the research house said the index remained in a bullish position and moved closer to its immediate resistance.
The momentum strengthened during the evening session, with HSIF adding 240 points to last trade at 25,699 points.
RHB Research noted that the Relative Strength Index (RSI) continued to trend higher, suggesting that bullish momentum was picking up. The index also remained firmly above its rising 50-day SMA, supporting the view that the underlying trend remains positive.
“If positive momentum persists, the index may stage a fresh attempt to break past the immediate resistance of 26,000 pts,” RHB Research said.
A successful breakout above 26,000 points could further improve market sentiment and push HSIF towards the next resistance at 26,750 points.
RHB Research therefore maintained its positive trading bias and advised traders to keep the long positions initiated at 24,657 points, based on the July 15 close.
For risk management, the stop-loss threshold is set at 24,200 points. Immediate support is seen at 25,000 points, followed by 24,200 points.
On the upside, resistance stands at 26,000 points followed by 26,750 points.
