Maintain long positions. The HSIF saw positive price actions last Friday, rising 160 pts from Thursday’s session to settle at 26,880 pts. The index began the day session at 26,724 pts, where it had a shaky opening – retracing lower before finding footing at the day low of 26,654 pts. Buying interest emerged at this low, which sent the HSIF to the day high of 26,902 pts. During the evening session, the index briefly advanced to the 26,932-pt high. This was before selling pressure emerged, causing it to retreat lower. It last traded at 26,826 pts. Since the RSI is slanting upwards, there is a possibility that the HSIF will move in sync with the uptrending 20-day SMA line and challenge the 27,000-pt physcological mark. The positive expectations should remain valid, provided the support level is not breached in the coming sessions. Since the bullish momentum is intact, we maintain our positive trading bias.

We recommend traders switch over to long positions. We initiated such positions at 26,720 pts, or closing level of 3 Dec. For risk-management purposes, a stop loss can be placed below 26,301 pts.

The immediate support is marked at the low of 30 Nov, ie 26,301 pts, and followed by 25,920 pts. On the upside, the immediate resistance is pegged at the recent high of 26,902 pts and followed by the next hurdle at 27,000 pts.

Source: RHB Securities Research - 7 Dec 2020