The HSIF’s bullish momentum failed to follow through during Monday’s session, declining 392 pts and closing at 17,705 pts.
RHB Retail Research said today (Sept 26) the index on Monday opened at 18,100 pts and initially rose to test the day’s high of 18,178 pts but then reversed to the day’s low of 17,690 pts before closing at 17,705 pts as it charted a long bearish candlestick. In the evening, the index recouped 39 pts and last traded at 17,744 pts.
The latest negative price action has erased bulk of the gains made during Friday’s session, showing that the bears are back in the driver’s seat.
As the RSI is turning lower, RHB expects the negative momentum to follow through in the coming sessions to breach the 17,539-pt support and head towards the 17,000-pt level. Pending the bearish breakout, RHB maintains a bearish trading bias.
RHB advises traders to retain the short positions initiated at 19,140 pts, or the close of 8 Aug. To mitigate the trading risks, the stop-loss is fixed at 19,500 pts.
The immediate support is marked at 17,539 pts – 22 Aug’s low – followed by 17,000 pts. Towards the upside, the immediate resistance is pegged at 18,500 pts, followed by 18,898 pts ie the high of 4 Sep.
Traders should keep the short positions initiated at 1,447.50 pts (17 Aug’s close). To minimise the trading risks, the stop-loss is fixed at 1,468.50 pts.
The immediate support is marked at 1,430 pts, followed by 1,400 pts. On the upside, the immediate resistance is pegged at 1,468.50 pts – 1 Aug’s high – followed by 1,500 pts.
