The HSIF underwent a rebound on Monday despite facing selling pressure.
RHB Retail Research (RHB) in a note today (June 25) said it climbed 44 pts to close at 18,062 pts – above the 18,000-pt psychological level.
Yesterday, the index opened at 18,017 pts, fell to the day’s low of 17,778 pts, then recouped the intraday losses and closed at 18,062 pts.
In the evening, it added 83 pts and last traded at 18,145 pts.
Although the index underwent a positive price action, it has yet to cross above the 50-day SMA line (18,190 pts).
The index still trades below both the 20- and 50-day SMA lines, so the bears still have the upper hand.
Meanwhile, the 20-day SMA line continues to trend lower, putting downward pressure on the index.
In a bearish setup, the resistance will be strong and the support is weak.
Should the index revert to a correction, a “lower low” movement would see the index pull back to 17,500 pts.
For now, they will maintain a negative trading bias.
Traders should maintain the short positions initiated at the close of 30 May (18,126 pts).
To manage the trading risks, the stop-loss is fixed at 19,000 pts.
The nearest support is marked at 17,500 pts, followed by 17,000 pts.
Conversely, the nearest resistance is still pegged at 18,500 pts, followed by 19,000 pts.
