The HSIF saw strong selling pressure yesterday, and shed 224 pts to close at 17,338 pts – breaching below the 17,404-pt support.
RHB Retail Research Market Dateline said today (Nov 29) that the index opened at 17,558 pts, then trended downwards until it printed the day’s low of 17,304 pts, before closing in negative territory.
In the evening, it dipped 11 pts and last traded at 17,327 pts. Despite the bearish breakout, the 20-day SMA line continues to trending upwards.
If the HSIF climbs above the 20-day SMA line, its uptrend should be resumed. For the immediate term, since the RSI is rounding downwards – which implies that the negative momentum is gaining traction – the index may pull back towards 17,000 pts.
As long as the HSIF stays above the 17,000-pt level, RHB will maintain a positive trading bias.
Traders should maintain the long positions initiated at 17,994 pts, or the close of 6 Nov. To minimise the trading risks, the stop-loss is set at 17,000 pts.
The immediate support is now at 17,000 pts, followed by 16,500 pts.
Conversely, the immediate resistance has been revised to 17,600 pts, followed by the next level of 18,000 pts.
