The HSIF extended its movement correction on Tuesday, falling 215 pts and closing at 16,958 pts.
RHB Retail Research Market Dateline said today (Oct 25) that it initially began trading at 17,173 pts, only to see its movement fall to the day’s low at 16,876 pts before closing at 16,958 pts – its weakest close in 2023 so far.
During the evening session, the index posted a 522-pt movement jump and last traded at 17,480 pts. The latest candlestick managed to cross above the 17,200-pt resistance.
However, the evening session remains in progress and the resistance is deemed as intact for now. In the event the HSIF’s movement closes above 17,200 pts during Wednesday’s session, this confirms that a counter-trend rebound has started off, potentially moving upwards to test the 20- and 50-day SMA lines.
Note: Both lines are trending lower and the Bearish Engulfing pattern that formed on 13 Oct is still intact – hence, the bearish structure remains in effect. For now, RHB keeps the bearish trading bias unchanged.
RHB advises traders to stay with the short positions initiated at 19,140 pts or the close of 8 Aug. To mitigate the trading risks, the trailing-stop threshold is fixed at 18,500 pts.
The immediate support has been changed to 16,500 pts, followed by the 16,000-pt level. Conversely, the immediate resistance is set at 17,200 pts while the higher resistance is pegged at 17,762 pts, ie the high of 19 Oct.
