Maintain long positions. The HSIF maintained a bullish posture, moving 195 pts higher to settle at 26,372 pts. The index began the day session with a bang, gapping up 124 pts to start at 26,412 pts. The bulls seized the opportunity to take profit from the high of 26,467 pts to the low of 26,204 pts. After reaching the low, the index recovered the losses and settled at 26,372 pts. Over at the night session, the bulls became more aggressive. The index opened at 26,374 pts and saw the bulls buying up to a session high of 26,572 pts, and last traded at 26,443 pts. We see that the overall trend is still demonstrating a bullish structure; however, we do see the upside risk capped by the psychological level of 26,500 pts. The index may need more minor corrections or sideway consolidations before it can breach the said level. As long the correction does not break the support level, we will keep to a positive trading bias.

We recommend traders maintain long positions. We initiated these at 26,177 pts, ie the closing level of 13 Nov. For risk-management purposes, we set a stop-loss below the 25,920 pts level.

The immediate support is unchanged at 25,920 pts, followed by 25,816 pts. On the upside, the immediate resistance is pegged at the round figure of 26,500 pts, followed by the 7 Jul high of 26,791 pts.

Source: RHB Securities Research - 17 Nov 2020