Maintain long positions. The HSIF saw the bulls in control yesterday as the index climbed 507 pts and settled the day session at 24,831 pts. It initially started off the latter session at 24,704 pts. After touching the 24,675-pt day low, it progressed higher and reached 24,902-pt day high before the close. During the evening session, the strong buying interest further lifted the HSIF by 200 pts – it last traded at 25,031 pts. Amidst the latest positive price action, the index is getting firmer above the 20-day SMA line. If the momentum follows through, the HSIF may test the 25,244-pt YTD high. Breaching the immediate threshold will lift the index towards the multi-month high or 25,745-pt resistance. If it retraces on profit-taking, we expect strong support to be found near the 20-day SMA line. With the bullish momentum in play now, we make no changes to our positive trading bias.

We recommend traders maintain the long positions initiated at 24,704 pts or the close of 9 Feb’s evening session. To protect the downside risks, the initial stop-loss is placed at 23,662 pts.

The immediate support is fixed at 24,105 pts – 4 Feb’s low – and followed by 23,662 pts, ie the low of 12 Jan. On the upside, the immediate resistance is pegged at 25,244 pts – 21 Jan’s high – and followed by 25,745 pts or the high of 16 Nov 2021.

Source: RHB Securities Research - 10 Feb 2022