The HSIF is consolidating sideways and eyeing to break above the 17,000 pts resistance.
RHB Retail Research in a note today (Feb 26) said on Friday, the index began trading at 16,766 pts.
After oscillating between 16,902 pts and 16,560 pts, it closed at 16,719 pts.
In the evening, the index recouped 6 pts and last traded at 16,725 pts. The latest price action saw the HSIF extending the sideways movement while keeping its position above the 50-day SMA line.
As of now, strong support has formed at the 16,200-pt level. As long as the index is consolidating above the 50-day SMA line, it may attempt to move higher by breaching the 17,000 pts resistance.
As mentioned in the previous note, we believe strong selling pressure would emerge at the 17,000-pt threshold.
The house will hold on to bearish trading bias until the index breaks past the 17,000-pt resistance level.
Traders should retain the short positions initiated at 16,253 pts (the close of 8 Jan). To manage the trading risks, the stop-loss threshold is set at 17,000 pts.
The first support has formed at 16,200 pts, followed by 15,500 pts. Conversely, the first resistance is pegged at 17,000 pts, followed by 18,000 pts.
