The HSIF’s upside movement was capped by the 16,400-pt resistance as it declined 193 pts during Monday’s session to close at 16,159 pts.
RHB Retail Research in a note today (Feb 20) said the index began the session at 16,352 pts and after hitting the day’s high at 16,432 pts, it fell to the day’s low at 16,148 pts before the close.
In the evening, the index recouped 48 pts and last traded at 16,207 pts.
The latest price action affirms that the 16,400-pt level remains as a resistance.
Recall that in a bearish envonirnment, the resistance will be strong while the support tends to be weak.
If the index corrects below the 50-day SMA line, it will likely resume the downward movement.
For the immediate session, expect a sideway movement below the 16,400-pt level.
The house makes no change to its negative trading bias until the 17,000-pt resistance level is surpassed.
Traders should retain the short positions initiated at 16,253 pts (the close of 8 Jan). To manage the trading risks, the stop-loss is set at 17,000 pts.
The immediate support is fixed at 15,500 pts, followed by 15,000 pts. Meanwhile, the immediate resistance is still pegged at 16,400 pts, followed by 17,000 pts.
