The HSIF hit the strong support level at 17,948 pts, as it recouped most of the intraday losses and closed at 18,261 pts yesterday.
RHB Research, in a note today (Aug 18), said the index initially began trading at 18,289 pts, only to fall to the day’s low at 17,882 pts before rebounding in the afternoon to close at 18,261 pts.
In the evening session, it dipped 114 pts and last traded at 18,147 pts.
The latest session saw a “long lower shadow” candlestick, indicating a strong support has been established at 17,948 pts.
For the immediate sessions, the index may resort to a sideways movement for consolidation.
Although the negative momentum failed to follow through during yesterday’s session, the bearish setup remains intact.
The 20-day and 50-day SMA lines are trending lower, adding downward pressure to the index.
Post consolidation, the index should resume its correction phase.
For now, RHB makes no changes to their bearish trading bias.
