The HSIF’s bearish momentum persisted yesterday, tumbling 313 pts to close at 16,284 pts – breaching below the 50-day SMA line.
RHB Retail Research in a note today (Apr 17) said the index began trading at 16,597 pts, then fell sharply towards the end of the session to hit the 16,212 pts low before closing at 16,284 pts – charting a fresh “lower low” beneath the SMA line.
In the evening, the index traded sideways in a mildly negative tone, falling 28 pts and last traded at 16,256 pts.
Yesterday’s negative sentiment was anticipated in the previous note and is likely to persist amid the weakening RSI at 40% in negative territory – suggesting the bears are still in control.
After breaking below the 16,400 pts support yesterday, they expect the index to trend lower towards the 16,000-pt support level.
Consolidation may be observed near the 16,000-pt level before forming a bullish reversal candlestick. They maintain a negative trading bias for now.
Traders are advised to keep the short positions initiated at 16,551 pts (the close of 19 Mar).
To minimise the trading risks, the initial stop-loss threshold is placed at 17,251 pts.
The nearest support is marked at 16,000 pts, while the lower support is at 15,500 pts.
On the upside, the immediate resistance remains unchanged at 17,251 pts – 14 Mar’s high – followed by the higher resistance of 18,000 pts.
