The HSIF faced bearish momentum for the eighth consecutive session yesterday as it closed 137 pts lower at 19,000 pts – only to recoup its intraday losses partially towards the close.
The index opened at 19,123 pts and inched higher to touch the 19,168-pt high before strong selling interest emerged to drag the index lower. It hit the day’s low at 18,774 pts before buying interest lifted it moderately towards the close. Buying interest continued in the evening session, which saw the index climb 83 pts to last trade at 19,083 pts.
The late buying interest during the latest session signals that selling momentum has paused – we may see the index trade sideways above the 18,774 pts of immediate support in the coming sessions. As the “lower low” bearish structure remains intact, the HSIF is expected to fall further below the immediate support after the consolidation. As such, RHB is sticking to a bearish trading bias.
