Maintain long positions. The HSIF saw mixed price action during Friday’s session. It slid during the day but managed to rise higher during the night session. We saw some profit-taking activities after the index started the day session at 25,809 pts, after which, it retraced to the session low of 25,542 pts. For day session, the index settled at 25,718 pts. Fortunately, the index tracked the strong performance of its peers on Wall Street during the night session, recouping its earlier losses to rise to the session high of 25,895 pts. With the RSI still pointing upwards, we think the bulls are dominating the trend. Any minor correction will pose an opportunity to ride the uptrend. As long the support levels are intact, we will keep our positive trading bias. 

We recommend traders maintain long positions. We initiated these at 25,029 pts, which was the closing level on 3 Nov. For risk-management purposes, and for profit protection, a trailing stop is set below 25,500 pts.

The immediate support is marked at 25,360 pts, which was the midpoint of 5 Nov, followed by 24,625 pts, which was the low of 4 Nov. On the upside, immediate resistance is unchanged and pegged at the recent high of 26,024 pts, followed by the high of 26,250.

Source: RHB Securities Research - 9 Nov 2020