The HSIF staged a mild rebound from the immediate support, climbing 20 pts to close Friday’s session at 17,630 pts.
RHB Retail Research (RHB) in a note today (July 2) said on the eve of the public holiday, the index started the session at 17,613 pts.
It then bounced off the 17,425-pt intraday low to close at 17,630 pts.
In the evening, it fell 74 pts and was last traded at 17,556 pts.
The latest price action reaffirmed that the 17,500-pt level remains the immediate support.
However, in a bearish setup, the support tends to be weak.
The 20-day SMA line is still trending lower, putting downward pressure on the index.
The index may consolidate sideways in the coming sessions.
Post consolidation, the bears should attempt to stage a bearish breakout at 17,500 pts, extending the correction towards 17,000 pts.
Pending the bearish breakout, they hold on to their negative trading bias.
Traders are recommended to hold on to the short positions initiated at the close of 30 May (18,126 pts).
To mitigate the trading risks, the stop-loss is set at 19,000 pts.
The first support is marked at 17,500 pts, followed by 17,000 pts.
On the upside, the first resistance is at 18,500 pts, followed by the higher resistance of 19,000 pts.
