The HSIF failed to reclaim the 18,000 mark on Tuesday, retracing 53 pts to close lower at 17,895 pts.
RHB Retail Research (RHB) in a note today (June 19) said yesterday, the index started off trading at 17,947 pts.
It then moved in a narrow range of 18,040 pts and 17,841 pts before closing at 17,895 pts – below the 18,000-pt level.
In the evening, it recouped 139 pts and last traded at 18,034 pts.
The latest price action sees the index printing a fresh “lower low” closing, showing the correction in progress.Even the RSI is trending downwards below the 50% mark, echoing the bearish momentum that is in play now.
As the 20-day SMA line is descending, expect selling pressure to drag the index lower.
The technical indicators are signalling that the bears are still in control.
As such, RHB held on to their bearish trading bias.
Traders are recommended to retain the short positionsvl initiated at the close of 30 May (18,126 pts).
To minimise the trading risks, the stop-loss is placed at 19,000 pts.
The immediate support is marked at 17,500 pts,vfollowed by 17,000 pts.
Conversely, the nearest resistance remains unchanged at 18,500 pts, followed by 19,000 pts.
