RHB Investment Bank Bhd (RHB Research) maintained its long position on Hang Seng Index Futures (HSIF), saying the index remains supported by bullish technical momentum and could move towards 26,350 points.
The HSIF gained 96 points on Tuesday to settle at 25,550 points, after opening at 25,451 points and moving between an intraday high of 25,679 points and a low of 25,402 points. It closed with a bullish candlestick.
In evening trading, the index added another 98 points to last trade at 25,648 points.
RHB Research said the HSIF remains firmly above its 50-day simple moving average (SMA), indicating that the broader bullish trend remains intact. The Relative Strength Index (RSI) has also stayed above the 50% level, suggesting that bullish momentum is strengthening.
“If the momentum strengthens, the index may climb higher towards the next resistance of 26,350 pts after rebounding from the support of 25,550 pts,” RHB Research said.
The research house maintained a positive trading bias and advised traders to retain long positions initiated at 24,657 points, based on the July 15 closing level.
To manage trading risks, the stop-loss threshold has been raised to 24,600 points.
The immediate support level is at 25,500 points, followed by 25,000 points. On the upside, resistance is seen at 26,350 points, followed by 26,750 points.
