Maintain long positions. The HSIF recorded its sixth consecutive gain, adding 23 pts to settle at 29,915 pts. Yesterday, the index opened 6 pts higher at 29,898 pts. It breached the 30,000-pt psychological level to reach the day high of 30,143 pts, before correcting to the 29,778-pt day low, and settling at 29,915 pts – leaving a Shooting Star bearish pattern at the top. The evening session saw HSIF last traded at 29,863 pts. Selling pressure was seen near the Shooting Star’s upper shadow, and hence, more consolidation is needed for the index to attempt crossing the 30,000-pt level again. We expect a minor pullback in coming sessions. As long as the trailing-stop stays intact, we maintain our positive trading bias.

We recommend traders maintain long positions. Our long positions were initiated at 26,943 pts, or the closing level of 30 Dec 2020. For risk management purposes and profit protection, the trailing-stop is kept at 29,378 pts.

The immediate support is unchanged at 29,378 pts, followed by 29,000-pt round figure. Towards the upside, the immediate resistance is pegged at the 30,000-pt psychological level, and the next resistance is revised to 30,143 pts.

Source: RHB Securities Research - 22 Jan 2021