The HSIF failed to extend the upside movement, declining 117 pts on Tuesday to close at 18,407 pts.
RHB Retail Research in a note today (May 8) said yesterday, the index began trading at 18,527 pts.
It rose to the 18,638 pts intraday high and fell to the 18,348 pts day’s low.
It then rebounded from the intraday low and closed at 18,407 pts. In the evening, the index recouped 4 pts and last traded at 18,411 pts.
The latest session saw a “lower high”, suggesting the bulls are taking a breather and an interim peak has formed at the 18,694-pt level.
As the RSI is rounding downwards, the index is likely to consolidate below the interim peak.
In the event selling pressure increases, the index may pull back towards the 17,600 pts support.
As long as it stays above the 17,600-pt threshold, RHB will stick to the positive trading bias.
Traders should keep the long positions initiated at the close of 25 Apr (17,342 pts).
To minimise the trading risks, the stop-loss threshold is placed at 17,600 pts.
The immediate support is marked at 17,600 pts, followed by 17,200 pts.
On the upside, the immediate resistance is pegged at 18,694 pts – the high of 6 May – and followed by the higher resistance at 20,000 pts.
