The HSIF breached the 20-day SMA line yesterday, as momentum picked up. It opened at 19,800 pts yesterday, and printed the day’s high of 20,539 pts before closing at 20,225 pts.
RHB Retail Research, in a note today (March 30), said in the evening, the index rose 76 pts and last traded at 20,301 pts. Despite the positive price action during the day session, it failed to cross above the 20,228-pt immediate resistance and charted a long upper shadow.
This indicates that the immediate resistance remains valid and the bears are still in the driver’s seat.
For immediate session, the index should consolidate sideways before staging a fresh attempt to close above the immediate threshold.
For now, RHB maintains a negative bias until a bullish breakout boosts the HSIF above the immediate resistance. The research house recommends that traders maintain the short positions initiated at 21,643 pts (3 Feb’s close).
To mitigate the trading risks, the trailing-stop is set at 20,228 pts.
The immediate support remains at 18,846 pts (20 Mar’s low), followed by 18,000 pts. Meanwhile, the immediate resistance is pegged at 20,228 pts (24 Mar’s high), followed by 20,750 pts.
