The HSIF fell 6 pts yesterday to close at 18,064 pts – still below the 50-day SMA line. T
RHB Retail Research (RHB) in a note today (June 27) said the index started Wednesday’s session at 18,069 pts.
It then traded within the tight range of 18,153 pts and 17,888 pts before closing at 18,064 pts.
In the evening, it declined 117 pts and was last traded at 17,947 pts. The index continues to trade below both the 50-day and 20-day SMA lines, and therefore, the technical setup remains bearish.
The RSI has been moving lower, showing that bearish momentum is growing stronger.
Based on the negative momentum, it is likely that the index will retreat towards 17,500 pts.
A fall below the immediate support will open the door for further correction towards 17,000 pts.
In a bearish environment, there is higher probability of a bearish breakout.
For now, they stick to the negative trading bias.
RHB noted that traders should hold on to the short positions initiated at the close of 30 May (18,126 pts).
To manage the trading risks, the stop-loss is set at 19,000 pts.
The immediate support is still marked at 17,500 pts, followed by 17,000 pts.
The nearest resistance is at 18,500 pts, followed by 19,000 pts.
