Maintain long positions. Despite a weak closing during the day session, the HSIF managed to stage a rebound during the evening session. The index initially started the day session at 28,661 pts. After mild momentum, which saw it tap the 28,895-pt day high, the HSIF fell to the day low of 28,581 pts and settled the day session at 28,608 pts. During the evening session, the index found its footing near the 20-day SMA line, ie the session low of 28,585 pts, and bounced to close at 28,741 pts. As long as it stays above both the 20- and 50-day SMA lines, sentiment will remain bullish. Meanwhile, the 28,550 pts level is providing strong support for the HSIF. We maintain our positive trading bias unless the stop-loss mark is breached.

We recommend traders stick to the long positions initiated at 28,894 pts, or the closing level of 25 May’s day session. For risk-management purposes, the stop-loss threshold is placed at 28,550 pts.

The immediate support remains at 28,550 pts, followed by 28,300 pts. On the upside, the immediate resistance is formed at the psychological 29,000-pt level and followed by 29,400 pts, ie the high of 1 Jun.

Source: RHB Securities Research - 11 Jun 2021