Trailing-stop triggered; initiate long positions. The HSIF saw the bullish momentum picking up pace yesterday, rising 95 pts to settle at 28,385 pts. The index started the day session at 28,285 pts and found footing at the day’s low of 28,088 pts before climbing to the 28,494-pt day’s high. It then saw mild selling pressure, paring gains to close at 28,385 pts. During evening session, the HSIF edged higher to close at 28,467 pts after testing the session high of 28,555 pts. The index is likely to see the bullish momentum continuing after breaching the previous resistance level of 28,283 pts. Underpinned by the bullish momentum, it may test the overhead resistance of the 20-day SMA line. Since the stop loss is breached, we shift over to a positive trading bias.

We closed out the short positions initiated at 30,077 pts, or the closing level of 22 Feb, after triggering the trailing stop at 28,300 pts. Conversely, we initiate long positions at the closing level of 29 Mar. For risk-management purposes, the stop-loss level is placed at 27,900 pts.

The immediate support is kept at the 28,000-pt round figure, followed by 26 Mar’s low of 27,715 pts. Towards the upside, the immediate resistance is revised to the 28,500-pt round figure, followed by the next hurdle at 28,850 pts.

Source: RHB Securities Research - 30 Mar 2021