The HSIF climbed above the 20-day SMA line to close at 16,858 pts yesterday, as it looks to resume upside movement.
RHB Retail Research in a note today (Mar 22) said the index began trading at 16,578 pts.
It jumped to the day’s high of 17,010 pts before closing at 16,858 pts. However, during the evening session, it retraced by 111 pts and was last traded at 16,747 pts.
As the index managed to close above the 20-day SMA line, the bulls now have the technical advantage.
A follow through of positive price action would see the index testing the 17,251-pt resistance.
They believe that strong resistance will emerge at 17,251 pts.
As long as the index trades below the 17,251-pt resistance level, we will keep our negative trading bias.
The house advise traders to hold on to the short positions initiated at the close of 19 Mar (16,551 pts).
To manage the trading risks, the initial stop-loss is set at 17,251 pts. The immediate support stays at 16,000 pts, followed by 15,500 pts.
Meanwhile, the immediate resistance remains at 17,251 pts – 14 Mar’s high – followed by 18,000 pts.
