Maintain long positions. The HSIF managed to reverse a good part of its earlier session’s losses – the low was posted at 25,252 pts – to settle 210 pts lower at 25,539 pts. This was marginally above the 25,500-pt support level. While the index continues to trade below the 200-day SMA line, provided it is still able to hold above the 25,500-pt threshold at the close, its positive case should remain in place. We keep to our positive trading bias.

We continue to recommend traders stay in long positions. We initiated these at 25,295 pts, which was 3 Jul’s closing level. For risk-management purposes, a stop-loss can now be placed below the 25,500-pt threshold.

We maintain the immediate support at the 25,500-pt mark. This is followed by 25,252 pts, which was the latest low. Conversely, the resistance level is set at the 26,000-pt round figure, and followed by the 26,300-pt mark.

Source: RHB Securities Research - 15 Jul 2020