Riding on strong bullish momentum, the HSIF climbed above the 50-day SMA line to close at 17,661 pts yesterday.
RHB Retail Research (RHB) in a note today (Aug 23) said the index opened at 17,375 pts.
It progressed higher throughout the session, hitting the 17,683-pt high before closing at 17,661 pts.
At the time of writing, the index was last traded at 17,627 pts.
The RSI is pointing upwards, showing that strong bullish momentum is in play.
Both the 20-day and 50-day SMA lines are acting as support levels.
The bulls will have the technical advantage as long as the index stays above the 20-day SMA line.
In the next session, they expected the index to extend its upside movement towards the 18,000-pt resistance.
As bullish momentum is in play, we maintain the positive trading bias.
They recommended traders hold on to the long positions initiated at 17,608 pts (the close of 19 Aug).
To minimise the trading risks, the stop-loss threshold is placed at 17,000 pts.
The immediate support is marked at 17,000 pts, followed by 16,500 pts, while the nearest resistance is seen at 18,000 pts, followed by 18,500 pts.
