The HSIF rebounded strongly towards the 17,000-pt resistance level on Friday, closing 358 pts higher at 16,826 pts.
RHB Retail Research in a note today (Dec 18) said it started mildly lower at 16,813 pts and rose to 17,003 pts before softening to close at 16,826 pts. In the evening, it retraced by 136 pts and was last traded at 16,690 pts.
The long bullish candlestick at the 17,000-pt level aligns with our expectation of a short-term rebound – likely limited by the 17,000-pt level before retracing to the 16,000-pt support level.
A strong rebound to break above the immediate resistance is possible, especially with the RSI improving to 45% (from 40%) on Friday.
Unless the rebound persists towards the immediate resistance level, RHB will maintain their bearish trading stance.
