The HSIF remained within the downward trajectory yesterday after declining 17 pts to close at 16,250 pts – heading towards the 16,000 pts support.
RHB Retail Research in a note today (Jan 16) said the index opened at 16,263 pts. After moving between 16,414 pts and 16,121 pts, it closed at 16,250 pts.
In the evening, it dipped 85 pts and last traded at 16,165 pts. The index is resuming its downward movement as the counter-trend rebound failed to lift it higher.
As mentioned in the previous note, both the 20- and 50-day SMA lines are trending lower, placing downward pressure on the index. In a
bearish setup, the HSIF should chart “lower highs” and “lower lows”.
Premised on the bearish momentum, we make no change to the negative bias. Traders should hold on short positions initiated at the close of 8 Jan (16,253 pts).
To mitigate the trading risks, the initial stop-loss threshold is fixed at 17,600 pts. The first support is marked at 16,000 pts, followed by 15,500 pts.
On the upside, the nearest resistance is pegged at 16,800 pts, followed by 17,600 pts.
