Last Friday, the HSIF experienced its fourth consecutive session of declines, dropping 305 pts to close at 18,578 pts, which is below the 20-day Simple Moving Average (SMA).
That day, it opened at 18,883 pts, recorded the intraday high at 18,955 pts then retraced to the intraday low of 18,507 pts before closing.
In the evening, it recouped 81 pts and last traded at 18,659 pts.
The latest bearish price action, coupled with the downtrending RSI, indicates that the momentum is decelerating.
Since the index is trading below the 20-day SMA line, the bears have the technical advantage now.
The index may continue to retreat towards the 18,200-pt support.
Meanwhile, the bulls may stage a rebound from the immediate support.
They will maintain a positive trading bias until the 18,200-pt support is breached.
Traders should maintain the long positions initiated at the close of 25 Apr (17,342 pts).
To minimise the trading risks, the stop-loss threshold is set at 18,200 pts.
The immediate support is marked at 18,200 pts, followed by 17,500 pts.
