Selling pressure on the HSIF picked up yesterday, and the index shed 454 pts to close at 17,610 pts.
RHB Retail Research (RHB) in a note today (June 28) said yesterday, it opened at 17,950 pts, trended south throughout the session and recorded the day’s low at 17,560 pts before the close.
In the evening, it further declined 86 pts and last traded at 17,524 pts.
The latest bearish candlestick reaffirms that the bears are still in the driver’s seat.
The RSI continues to trend downwards, indicating that the bears are staying strong, as well.
Expect a follow-through negative price action to test the 17,500-pt level.
In the event a bearish breakout happens, the correction would be extended towards the 17,000-pt level.
Riding on the bearish momentum, they made no change to our negative trading bias.
Traders should maintain the short positions initiated at the close of 30 May (18,126 pts).
To minimise the trading risks,the stop-loss is fixed at 19,000 pts.
The nearest support is located at 17,500 pts, followed by 17,000 pts, while the nearest resistance is at 18,500 pts, followed by 19,000 pts.
