Maintain short positions. The HSIF saw strong buying interest yesterday, rebounding 681 pts to settle the day session stronger at 24,013 pts. The index started off at 23,719 pts and found the day session’s low at 23,501 pts. It then reversed towards the 24,029-pt day high before the close – breaching the previous resistance of 23,857 pts. In the evening session, it climbed 62 pts and was last traded at 24,075 pts. With the latest “higher high” bullish pattern, the index is looking to extend the momentum and test the 24,200-pt level. If the resistance is breached, momentum may accelerate it towards 25,000 pts. However, we are cautious that the RSI is still trending below 50%, and profit-taking may emerge near the resistance. We maintain our negative trading bias until the trailing-stop is triggered.

Traders are recommended to keep the short positions initiated at 24,892 pts, or the closing level of 19 Nov’s evening session. To limit the trading risks, the trailing-stop threshold is fixed at 24,200 pts.

The immediate support is revised to 23,600 pts, followed by 23,259 pts, or the low of 1 Dec. Meanwhile, the immediate resistance is eyed at 24,200 pts, followed by the 25,000-pt round figure.

Source: RHB Securities Research - 8 Dec 2021