The HSIF staged a strong rebound during Monday’s session, recouping 293 pts and closing at 19,683 pts.
RHB Retail Research, in a note today (May 23), said the index began Monday’s session at 19,406 pts.
After the opening, it progressed higher to touch 19,782 pts and closed at 19,683 pts. In the evening, the index advanced another 61 pts and last traded at 19,744 pts. The latest session sees the index charting a bullish candlestick.
However, it has yet to print a “higher high”. Furthermore, the index upside is still capped by both the 20-day and 50-day SMA lines. We view the momentum not strong enough to stage a bullish breakout.
Hence, the technical signals indicate that the bearish setup remains valid. The index is likely to resume downwards in the coming sessions. As such, RHB will keep their negative bias unchanged.
Traders are advised to hold on to the short positions initiated at 19,924 pts, or the close of 24 Apr. For trading risk management, the stop-loss is adjusted to 20,500 pts from 20,800 pts.
The immediate support stays at 19,000 pts, followed by 18,500 pts. Conversely, the immediate resistance is still pegged at 20,000 pts, followed by 20,500 pts.
