Maintain long positions. The HSIF rose marginally on Tuesday, after selling pressure during the intraday session was well-absorbed by the bulls. The index started the day session at 26,386 pts, and saw some profit-taking activities before retracing towards the session low of 26,063. Buying interest emerged after the minor correction, and the index rebounded towards the day high of 26,440 pts to settle at 26,361 pts. A similar pattern was seen during the night session. The index opened at 26,348 pts and retraced towards a low of 26,183, later rebounding to close at 26,385. As the index is trading at a level far from the 20-day SMA line, it needs to further consolidate above the immediate support level before testing the higher resistance level. With the RSI still slanting upwards, we keep our positive trading bias.

We recommend traders maintain long positions. We initiated these at 25,029 pts, or the closing level of 3 Nov. For risk-management purposes, and for profit protection, a trailing stop is set below 26,024 pts. The immediate support is marked at 26,024 pts, or the high of 6 Nov, followed by 25,576 pts, which was the low of 9 Nov. On the upside, immediate resistance is pegged at 26,791 pts, or the high of 7 Jul, followed by the recent high of 26,875 pts.

Source: RHB Securities Research - 11 Nov 2020