The HSIF gave up the bulk of its intraday gains on Tuesday to close at 18,070 pts, registering a gain of 8 pts from Monday’s session.
RHB Retail Research (RHB) in n a note today said the index began the session at 18,061 pts.
It rose to the high of 18,264 pts before the close.
In the evening, it lost 112 pts and was last traded at 17,958 pts.
The latest candlestick with a long upper shadow confirms that both the 50-day and 20-day SMA lines are acting as resistance.
The 20-day SMA line is trending lower, and continues exerting downward pressure on the index.
Tuesday’s weak closing also suggests that the bears still have the upper hand.
They expected the index to resume its downward movement and test the immediate support level at 17,500 pts.
As the bears are still in control, they maintained the negative trading bias.
Traders are advised to retain the short positions 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, followed by 17,000 pts.
The immediate resistance is still pegged at 18,500 pts, followed by 19,000 pts.
