On the last trading session of May, the HSIF retraced by 286 pts and closed at 18,200 pts – charting a fresh low for 2023. Yesterday, the index opened at 18,511 pts, then trended south throughout the session and printed the day’s low of 17,966 pts day low before the close.
RHB Retail Researchm in a note today (June 1) said, in the evening, the June futures contract dipped 37 pts and last traded at 18,163 pts. The latest session saw an extension of the “lower high” and “lower low”, indicating that the bearish trend remains intact.
The correction should remain intact until RHB sees a bullish reversal pattern emerging, or a candlestick with a long lower shadow.
Looking ahead – and as the prevailing trend is bearish – a follow-through price action may lead to a close below the 18,000-pt support. As such, RHB maintains a negative trading bias.
Traders should maintain the short positions initiated at 19,924 pts, or the close of 24 Apr. To minimise the trading risks, the stop-loss has been adjusted down to19,250 pts from 20,000 pts.
The immediate support is marked at 18,000 pts, followed by 17,400 pts. On the flip side, the immediate resistance is now at 18,600 pts, followed by 19,000 pts.
