RHB Investment Bank Bhd (RHB Research) is maintaining its long positions on Hang Seng Index Futures (HSIF) as the contract extends its technical rebound and strengthens its bullish momentum.
The HSIF climbed 329 points last Friday to close at 26,024 points, after moving between an intraday low of 25,540 points and a high of 26,025 points. It opened at 25,682 points and formed a long bullish candlestick at the close.
At the time of writing, however, the HSIF had eased 129 points to 25,895 points.
RHB said the move above the 26,000-point threshold has confirmed a bullish breakout, suggesting market sentiment has improved and the bulls are gaining strength.
The research house expects the index to test its immediate resistance at 26,350 points, followed by the higher resistance at 26,750 points.
Momentum indicators are also supporting the positive outlook, with the Relative Strength Index (RSI) remaining above the 50% threshold, pointing to the potential for further positive price action in the coming sessions.
RHB is therefore sticking with its positive trading bias and advised traders to maintain the long positions initiated at 24,657 points on July 15.
For risk management, the stop-loss level has been revised to 24,600 points. The immediate support is now seen at 25,500 points, followed by the 25,000-point mark.
