The HSIF failed to continue its initial rebound yesterday, as it closed 118 pts lower at 16,276 pts – still consolidating near the 16,000-pt support.
RHB Research in a note today (Dec 14) said it opened at 16,392 pts and oscillated downwards between 16,455 pts and 16,161 pts, before closing in negative territory. In the evening, the index fell 119 pts and last traded at 16,157 pts.
The bearish price action nullifies the initial rebound on Tuesday, signaling a consolidation phase near the 16,000-pt support level, with a bearish bias dropping below this point. The overall bearish momentum is well supported by the weak RSI being at 35% (in negative territory), with no divergent signal yet.
Breaching below the 16,000-pt support would see the HSIF trending downwards towards 15,000 pts, ie the next support level. Amidst the consolidation phase, we maintain a bearish trading bias.
