Maintain short positions.The HSIF fell below the 18,000-pt support level yesterday, losing 201 pts to close at 17,916 pts.
RHB Retail Research (RHB) in a note today (June 13) said the index started Wednesday’s session at 18,113 pts.
It moved lower throughout the session, hitting the day’s low of 17,808 pts before closing at 17,916 pts.
In the evening, it recouped 119 pts and was last traded at 18,035 pts.
The bearish breakout at 18,000 pts showed that the bears are still in control.
If the negative price action follows through in the next session, the index may see a pullback below the 50-day SMA line and retrace towards the 17,500-pt support level.
The 20-day SMA line is rounding downwards, showing that the short-term trend is bearish.
Based on the technical signals, RHB maintained their bearish trading bias.
Traders should keep 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.
Following the bearish breakout, the first support is revised lower to 17,500 pts, followed by 17,000 pts.
The nearest resistance remains at 18,500 pts, followed by 19,000 pts.
