The HSIF staged a rebound on Tuesday, climbing 183 pts to close at 16,394 pts.
RHB Retail Research Market Dateline said today (Dec 13) it started the session at 16,211 pts. After testing the high of 16,457 pts, it closed at 16,394 pts.
In the evening, the index rose 14 pts and was last traded at 16,408 pts. The positive price action reaffirmed that there is strong support at the 16,000-pt level.
In the coming sessions, the index should consolidate sideways above the immediate support.
However, the RSI is still trending below the 50% threshold, suggesting that momentum remains weak. While the index may attempt to move higher, upside resistance should have formed at 17,000 pts.
In a bearish environment, the resistance will likely block upward movement. Post consolidation, the index should resume its downward movement. During this consolidation phase, RHB retains the negative trading bias.
Traders should keep the short positions initiated at the close of 1 Dec (16,895 pts). To manage trading risks, the initial stop-loss is set at 18,000 pts.
The immediate support is marked at 16,000 pts, and the subsequent support level is at 15,000 pts. On the upside, the immediate resistance is pegged at 17,000 pts, followed by 17,600 pts.
