The HSIF underwent fresh selling pressure on Thursday, and shed 149 pts to close at 16,973 pts.
RHB Retail Research in a note today (Mar 15) yesterday, the index opened at 17,123 pts, rose to the day’s high of 17,251 pts before reversing direction in the afternoon to print the day’s low of 16,898 pts before closing.
In the evening, profit-taking activities continued and the HSIF retraced 175 pts and last traded at 16,798 pts.
The latest session saw the emergence of a bearish candlestick, while the index’s uptrend was capped by the 17,251-pt resistance.
Note that the RSI is rounding southwards, which indicates that the positive momentum is slowing down while a correction is in play.
Expect the index to pull back towards the 16,600-pt support and form an interim base near the 20-day SMA line.
The house will maintain a positive trading bias until the 16,000-pt support is breached.
They recommend that traders hold on to the long positions initiated at the close of 11 Mar, ie 16,616 pts.
To manage the trading risks, the initial stop-loss is set at 16,000 pts.
The immediate support remains at 16,600 pts, followed by 16,000 pts.
Conversely, the nearest resistance has been revised to 17,251 pts – 14 Mar’s high – followed by the 18,000-pt level.
