The HSIF extended its sideways movement during Monday’s session, inching up 2 pts to close at 16,552 pts.
RHB Retail Research said in a note today (Mac 5) the index started off the session at 16,555 pts.
The intraday momentum was neutral as it only traded within the range of 16,640 pts and 16,440 pts.
However, the negative momentum gained pace in the evening session with the index falling 184 pts, and last traded at 16,368 pts.
Based on the price action, the HSIF is struggling to stay above the 50-day SMA line.
In the event it breaches below the line, the market sentiment would become negative again.
Strong selling pressure would drag the index towards the lower support at the 15,500-pt level.
Meanwhile, the 17,000-pt level will resist the upside movement.
RHB will keep the bearish trading bias until the index breaks through the 17,000 pts resistance.
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 placed at 17,000 pts.
The immediate support is marked at 16,200 pts, followed by 15,500 pts. Conversely, the nearest resistance remains
unchanged at 17,000 pts, followed by 18,000 pts.
