Stay long, with a trailing-stop set below the 23,700-pt level. The HSIF’s upside move continued as expected, as a white candle was formed yesterday. It rose to a high of 24,598 pts during the intraday session, before ending at 24,408 pts. From a technical perspective, the index has marked a higher close – vis-à-vis the previous sessions since 9 Apr – which suggests the positive sentiment remains intact. Overall, we expect the market to rise further if the previously mentioned immediate 24,600-pt resistance is decisively taken out in the coming sessions.

As observed on the chart, the immediate support level is now seen at 23,700 pts, ie near the low of 7 Apr’s long white candle. The next support is anticipated at the 23,000-pt psychological mark. On the other hand, we anticipate the immediate resistance level at 24,600 pts, which was obtained near the high of 8 Apr. The next resistance will likely be at 25,750 pts, which was near 11 Mar’s high.

Recall that on 25 Mar we initially recommended traders to initiate long positions above the 22,300-pt level. We continue to advise them to stay long for now while setting a trailing-stop below the 23,700-pt threshold – this is to lock in a larger part of the profits.

Source: RHB Securities Research - 15 Apr 2020