The HSIF failed to stage a rebound on Friday as robust bearish momentum persisted, leading to a decline of 260 pts and a closing at 16,353 pts – solidifying its downtrend structure.
RHB Retail Research Market Dateline said today (Dec 27) that the index opened at 16,618 pts, and experienced volatility with a 16,878 pts high and a 16,276 pts low before concluding in negative territory near the intraday low. In the evening session, the index remained flat and last traded at 16,353 pts.
The recent emergence of a strong bearish candlestick below the 20-day SMA line indicates renewed bearish momentum within the existing downtrend structure – pointing towards the 16,000 pts support.
The overall weakened momentum is further supported by the RSI at 39% in negative territory. Consequently, RHB maintains their bearish trading stance.
Traders should keep the short positions initiated at the close of 1 Dec or 16,895 pts. To manage the trading risks, the stop-loss threshold is set at the 17,000 pts immediate resistance.
The immediate support is marked at 16,000 pts, followed by the subsequent support at 15,000 pts. The immediate resistance is pegged at the abovementioned 17,000 pts, followed by 17,600 pts.
