Maintain short positions. The HSIF bulls are taking a breather near the immediate resistance. It retraced 10 pts during the day session and settled at 24,003 pts. However, it tracked its US peers during the evening session, climbing 154 pts to close at 24,157 pts. Since forming the One White Soldier bullish candlestick on 7 Dec, the index has been moving higher, and eyeing the immediate resistance at 24,200 pts. If it manages to break past this threshold, we expect follow-through momentum to lift it towards the 50-day SMA line or 25,000 pts. Nevertheless, we expect strong selling pressure to emerge near the immediate resistance – we stick to our negative trading bias until the threshold is breached.
Traders are advised to stick with the short positions initiated at 24,892 pts, or the closing level of 19 Nov’s evening session. To mitigate trading risks, the trailing-stop threshold is set at 24,200 pts, which is the immediate resistance.
The nearest support is marked at 23,600 pts, followed by 23,259 pts (1 Dec’s low). Meanwhile, the immediate resistance is seen at 24,200 pts, followed by the higher hurdle at 25,000 pts.
Source: RHB Securities Research - 9 Dec 2021
Created by rhboskres | Aug 26, 2024