The HSIF rebounded by 342 pts on Tuesday to close at 19,138 pts.
RHB Retail Research said today (June 28), it opened at 18,798 pts, then climbed to the day’s high of 19,226 pts before closing. In the evening, the index added 47 pts and last traded at 19,185 pts.
Despite the strong bullish movement, the HSIF has yet to cross above the 20-day SMA line.
Conversely, the 19,250-pt resistance remains intact. As such, it is too early to conclude if the trend has changed to a bullish one.
RHB may see a bull trap if the gains made on Monday are erased, and as long as the index stays below the 19,896-pt resistance, the bears will have the technical advantage.
Premised on this, RHB maintains their negative trading bias. RHB advises traders to keep to the short positions initiated at 18,875 pts or the close of 23 Jun.
To manage the trading risks, the initial stop-loss is set at 19,896 pts. The first support remains at 18,500 pts, followed by 18,000 pts.
Towards the upside, the nearest resistance is still at 19,250 pts, followed by 19,896 pts or the close of 19 Jun.
