The HSIF extended its upside movement on Tuesday, rising 105 pts to close at 17,913 pts as it eyes a bullish breakout at the 18,000-pt resistance level.
RHB Retail Research (RHB) in a note today (Aug 28) said the index started yesterday's session at 17,810 pts.
After setting a foothold at the 17,633-pt low, it bounced to the day's high of 17,922 pts before the close.
At the time of writing, the index had inched 3 pts higher and was last traded at 17,916 pts.
They observed that the index printed a "higher high" and "higher low" during the session.
The price action shows that the bulls have the upper hand.
Riding on the momentum, the bulls may attempt to cross above the 18,000-pt resistance level and stretch the bullish trajectory towards 18,500 pts.
The 20-day SMA line continues to trend higher, strengthening the bullish technical setup.
Pending the bullish breakout, they retained the positive trading bias.
Additionally, they recommended traders stay in the long positions initiated at 17,608 pts (the close of 19 Aug).
To manage the trading risks, the stop-loss is placed at 17,000 pts.
The first support is at 17,000 pts, followed by 16,500 pts.
On the upside, the nearest resistance is still pegged at 18,000 pts, followed by 18,500 pts.