The HSIF saw a pause in its bearish momentum yesterday, settling on a neutral note at 16,293 pts – still below the 50-day SMA line.
RHB Retail Research in a note today (Apr 18) said the index began trading at 16,284 pts and oscillated within the tight range of 16,323 pts and 16,160 pts before closing near the opening level at 16,293 pts.
In the evening, it fell 82 pts to close at 16,211 pts. The pause in the downtrend movement is likely to be temporary, with a potential resumption of downward movement towards the 16,000-pt support level, supported by the weakening RSI (in negative territory).
As mentioned in their previous note, consolidation may be seen near the 16,000-pt support before potentially forming a bullish reversal candlestick.
With the index trading lower – below the 50-day SMA line – we maintain the negative trading bias.
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 at 17,251 pts – 14 Mar’s high – followed by the higher resistance of 18,000 pts.
