The market sentiment on HSIF remains risk off after the index plunged 325 pts to close lower at 14,978 pts – breaching below the 15,000-pt support.
RHB Retail Research in a note today (Jan 23) said yesterday, the index began trading at 15,311 pts. After touching the 15,510 pts day’s high, it fell to the 14,796 pts day’s low before the close.
In the evening, the index recouped 163 pts and last traded at 15,141 pts. The latest price action saw a bearish breakout, echoing our view that support tends to be weak in a bearish setup.
Although the HSIF managed to rebound from the 14,800-pt support, it may attempt to break below the latest support since the bears are still in control now.
The RSI is trending downwards – indicating the negative momentum is gaining speed now. Premised on the bearish setup, we make no change to the negative bias.
Traders are advised to stick to the 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 immediate support is revised to 14,800 pts, followed by 14,000 pts. Conversely, the first resistance has been adjusted to 15,600 pts, followed by 16,000 pts.
