RHB Research is still maintaining “short” positions for the moment.
The HSIF experienced a strong rebound yesterday, jumping 461 points to close at 20,027 points. Following Wednesday’s sharp correction, the index started off Thursday’s session higher at 19,578 points. After the opening, it surged towards the session’s 20,076-point high before the close. In the evening session, the index inched up 1 point and last traded at 20,028 points. The bullish price action was in tandem with its regional peers, as the mood has turned risk-on. However, the index has yet to break past the 20,200-point resistance to form a “higher high”. This is coupled with the fact that it is still trading below the 20-day SMA line – therefore the research house is holding the view that the bears remain in control. In the event it breaches the immediate resistance, it is expected strong upside momentum to emerge. Until this happens, the research house will retain its bearish bias for the moment.
Traders should keep the short positions initiated at 20,836 points or 12 July’s close. For risk management, the stop-loss is set at 20,200 points.
The immediate support remains at 19,455 points – 3 August’s low – followed by 19,063 points, or the low of 10 May. On the upside, the immediate resistance is seen at 20,200 points, followed by 21,000 points.
