Maintain long positions. The HSIF continued scaling higher, rising 223 pts to close at 24,835 pts. The index started the day session at 24,608 pts, testing the session’s low of 24,520 pts before rebounding to close at 24,863 pts, a level near the session high. During the night session, the HSIF pared some gains from the day session. The index started with 31 pts gapped down to 24,832 pts, and only managed to recoup 3 pts to close at 24,835 pts. As the 20- day SMA line is trending higher, together with a rising RSI indicator, we are looking forward to the index having a follow-through action, trading above the resistance level. Riding on the bullish sentiment, we are raising our stop-loss to trail the uptrend. Meanwhile, we maintain our positive trading bias.

We recommend that traders maintain long positions. We initiated these at 23,951 pts, or the closing level of 6 Oct. For risk-management purposes, the stop-loss is revised higher to 24,466 pts, which was 21 Oct’s day low.

The immediate support is revised to 24,466 pts, followed by the 23,981-pt mark. On the upside, the immediate resistance is kept at 14 Oct’s day high of 24,805 pts, followed by the 24,898-pt mark.

Source: RHB Securities Research - 23 Oct 2020