The HSIF’s momentum turned bullish on Monday – lifting the index 197 pts to close at 18,151 pts. Yesterday, it started off at 17,957 pts and fell to the 17,791 pts day’s low.
RHB Retail Research, said today (Aug 29), that however, strong buying pressure emerged to propel the index towards the 18,541 pts day’s high before closing at 18,151 pts. In the evening, the HSIF gained 149 pts and last traded at 18,300 pts.
The latest bullish candlestick, coupled with the upticking RSI, showed momentum is turning positive again. After a breakout above the 18,000 pts resistance, the index is eyeing to test the 18,500-pt level, followed by the 20-day SMA line.
Despite the bullish momentum gaining traction, the bears still have the technical advantage as long as the index stays below the 20,000 pts resistance. During the counter-trend rebound phase, RHB will stick to a negative trading bias.
Traders are advised to hold on short positions initiated at 19,140 pts or 8 Aug’s close. To manage the trading risks, the initial stop-loss threshold is set at 20,000 pts.
The immediate support remains unchanged at 17,539 pts – 22 Aug’s low – followed by 17,000 pts. On the upside, the immediate resistance has been adjusted to 18,500 pts, followed by the higher resistance at 19,500 pts.
