The HSIF is attempting to cross above the 20-day SMA line, climbing 11 pts and closing at 18,066 pts yesterday.
RHB Retail Research said today (Sept 15) that the index began trading on Thursday at 18,057 pts. It oscillated between 18,207 pts and 17,943 pts before closing at 18,066 pts.
In the evening session, positive momentum gained speed to lift the index by 105 pts and it last traded at 18,171 pts. We observed that the index is testing the boundary of the 20-day SMA line.
Crossing above the short-term moving average line would improve the market sentiment. Should the positive momentum follows through, the index will travel towards the 18,500-pt level.
RHB expects strong selling pressure to emerge near 18,500 pts. Resistance tends to be strong in the bearish setup. Despite the positive momentum gaining traction, they still hold on to bearish trading bias.
Traders should keep the short positions initiated at 19,140 pts, or the close of 8 Aug. To manage the trading risks, the stop-loss threshold is set at 19,500 pts.
The immediate support is marked at 18,000 pts, followed by 17,539 pts or the low of 22 Aug. On the other hand, the immediate resistance sticks at 18,500 pts, followed by 18,898 pts or the high of 4 Sep.
