The HSIF struggled to extend its upside movement above the 50-day SMA line during Tuesday’s session despite climbing 238 pts to close at 20,550 pts.
RHB Retail Research cited in a note today (April 12) that the bourse began the session at 20,555 pts and rose to test the 20,811 pts day high.
However, the momentum failed to follow through as the index gave up the bulk of intraday gains before the close. In the evening session, it fell 20 pts and last traded at 20,530 pts.
The latest price action showed sentiment remains neutral. Should the HSIF chart a fresh “higher high” candlestick, it will face a hurdle at the 20,750-pt resistance.
Breaching above the immediate resistance will improve the market sentiment and open the door for an upside movement towards the 21,750-pt level.
Conversely, the 20-day SMA line is trending higher and providing downside support.
Although mild profit-taking activities were seen during Tuesday’s session, the overall technical signal indicated the bulls remain in control. Hence, RHB keeps to their positive trading bias. Traders should retain the long positions initiated at 20,481 pts (31 Mar’s close).
To manage the trading risks, an initial stop-loss is fixed at 19,500 pts. The immediate support is marked at 20,000 pts and followed by 19,500 pts. On the upside, the immediate resistance is pegged at 20,750 pts, followed by higher resistance of 21,750 pts.
