The HSIF moved volatilely during yesterday’s intraday session, but it closed neutrally at 18,424 pts – indicating sideways movement following the previous session’s sharp pullback.
RHB Retail Research, in a note today (Sept 7), said the index opened at 18,431 pts and fluctuated between 18,532 pts and 18,215 pts, before closing just below the opening level. In the evening, it climbed 25 pts and last traded at 18,449 pts.
The presence of a doji candlestick with a lower shadow suggests that the strong selling pressure beneath the 50-day SMA line has paused.
However, the index remains within a major downtrend – below the bearish crossover. In the short term, a mild rebound may be expected, with a likely cap at 18,898 pts or the 50-day SMA line.
However, strong selling pressure is anticipated in later sessions, pushing the HSIF lower towards the 18,000 pts support.
Supported by a weak RSI below the 50% level, the overall bearish momentum remains intact. As such, RHB’s negative trading bias remains unchanged.
