The HSIF’s positive momentum took a breather yesterday, with the index retreating 175 pts to close at 20,028 pts.
RHB Retail Research, in a note today (Aug 2), said it began yesterday’s session at 20,204 pts. At one point, it posted a movement surge to test the day’s high of 20,404 pts on strong momentum.
However, it pulled back in the afternoon to close at 20,028 pts. The index fell 136 pts during the evening session, and was last traded at 19,892 pts.
For now, the 20- and 50-day SMA lines have intersected to form a Bullish Crossover, suggesting that the trend is turning bullish – RHB expects further upside in the upcoming sessions.
Meanwhile, strong support has formed at 19,250 pts. Unless the 19,250-pt support level is breached, the overall technical setup will remain bullish. For now, RHB retains their positive trading bias.
