Maintain long positions. The HSIF broke out above the 50-day SMA line, rising 110 pts to close at 24,945 pts. The index started the day session lower at 24,766 pts, briefly trading at the session’s low of 24,646 pts, before rebounding to close at 24,919 pts – a level near the session’s high. During the night session, the HSIF continue to inch higher. The index started at 24,890 pts, dipping to a low of 24,851 before rebounding to the session high of 24,960. As the index has breached both our previous resistance levels, we set our sights on a higher resistance level, above the 25,000-pt mark. The 20-day SMA line is curving higher, and will act as technical support for the bullish trend. As such, 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 set at 24,466 pts, which was 21 Oct’s day low.

The immediate support is unchanged at 24,466 pts, followed by the 23,981-pt mark. On the upside, the immediate resistance is sighted at the 25,000-pt round figure, followed by the 25,202-pt mark

Source: RHB Securities Research - 26 Oct 2020