The HSIF failed to cross above the 20-day SMA line, losing 47 pts on Friday to close at 15,553 pts.
RHB Retail Research in a note today (Feb 5) said the index opened at 15,612 pts and jumped to the 15,965-pts high.
The momentum reversed in the afternoon, with the index pulling back to the 15,475-pt low before closing in negative territory.
In the evening, the negative momentum followed through, and the index was last traded at 15,412 pts.
The latest price action confirms that the 20-day SMA line is acting as the overhead resistance.
As long as the index stays below the short-term SMA line, the bears will have the upper hand.
The RSI is pointing downwards, below the 50% threshold, showing that negative momentum is in play.
Based on the technical setup, the bearish structure is firmly intact – we make no change to the negative trading bias.
Traders should keep the short positions initiated at 16,253 pts (the close of 8 Jan).
To minimise the trading risks, the stop-loss is placed at 17,000 pts.
The nearest support is at 15,000 pts, followed by 14,000 pts.
On the upside, the first resistance is adjusted to 16,000 pts, followed by 16,400 pts.
