Stay long while setting a trailing-stop below the 23,700-pt support. The HSIF formed a “Doji” candle yesterday. It declined 104 pts to close at 23,948 pts, off the session’s high of 24,124 pts. On a technical basis, we think the positive sentiment stays unchanged, as the index is still trading above the previously mentioned 23,700-pt support. As long as the HSIF fails to erase the gains created by 7 Apr’s long white candle, we believe the buyers still have control over the market. Overall, we remain bullish on the index’s outlook.

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

Therefore, we advise traders to stay long, following our recommendation of initiating long above the 22,300-pt level on 25 Mar. In the meantime, a trailing-stop can be set below the 23,700-pt mark to secure part of the profits.

Source: RHB Securities Research - 17 Apr 2020