The HSIF staged a rebound in Monday’s session to recoup 32 pts and closed at 17,948 pts – still below the 18,000-pt level.
RHB Retail Research (RHB) in a note today (June 18) said yesterday, the index opened at 17,914 pts. It traded within a tight range of 18,121 pts and 17,692 pts before closing at 17,948 pts.
In the evening, it rose 70 pts and last traded at 18,018 pts. Despite the index printing a bullish body candlestick, it failed to chart a “higher high” closing.
The bears still possess the technical advantage since the index is trading below the 20-day SMA line.
The short-term moving average line is rounding downwards, placing selling pressure on the index.
In a bearish setup, resistance tends to be strong.
As long as the index stays below the 18,000 pts resistance, expect selling pressure to increase and drag the HSIF towards the 17,500-pt level.
The RSI is hovering below the 50% threshold, echoing bearish momentum is in play.
Premised on the technical setup, they made no change to the bearish trading bias.
Traders should hold on the short positions initiated at the close of 30 May (18,126 pts).
To manage the trading risks, the stop-loss threshold is fixed at 19,000 pts.
The immediate support locates at 17,500 pts, followed by 17,000 pts.
On the flipside, the first resistance is pegged at 18,500 pts, followed by 19,000 pts.
