The HSIF is still undergoing a bearish phase as it declined 36 pts yesterday to close at 18,486 pts.
RHB Retail Research, in a note today (May 31) said the index began Tuesday’s session at 18,590 pts, and at one point, it fell to the day’s low at 18,413 pts but managed to stage an intraday rebound to close at 18,486 pts – charting a candlestick with a long lower shadow.
The evening session saw the index retraced 226 pts to last trade at 18,260 pts.
Despite the index managing to bounce off from the day’s low, it is still charting a “lower high” bearish candlestick, indicating the bears still possess the technical advantage.
There may be a counter-trend rebound since the index is trading far away from the 50-day SMA line, but the upside movement should be capped by the 19,000-pt resistance.
In the coming sessions, RHB urges traders to Maintain short positions as they are very likely to see a correction towards the 18,000-pt support. With the bears still in control, RHB keeps to the negative trading bias.
