Maintain long positions. The HSIF ended on a “Doji” candle yesterday, closing at 25,030 pts after hovering between a high of 25,181 pts and a low of 24,811 pts. Still, we maintain our near-term bullish sentiment as the index is still holding up above the 200-day MAV line. Given that the market did not breach below the 24,418-pt support mentioned previously, this shows that the bulls are still in control of the market. Overall, the previous two days’ candles can be viewed as a weak pullback after the recent rise.

As seen in the chart, the immediate support level is at 24,418 pts, obtained from 10 Jul’s low. If this level is taken out, the crucial support level is maintained at 22,714 pts, ie the previous low of 8 Jul. On the other hand, the immediate resistance level is anticipated at 26,417 pts, situated near the middle of 29 Jun’s black candle. The next resistance will likely be at 27,371 pts, the previous high of 25 Jun.

On 14 Jul, we initially recommended traders to initiate long positions above the 24,966-pt level. We continue to advise them to stay long, while setting a tight stop-loss level below the 24,418-pt mark in order to limit the downside risk.