The HSIF printed a fresh “higher high” on Friday, climbing 191 pts and closing higher at 17,079 pts.
RHB Retail Research (RHB) in a note today (Aug 12) said on Friday, the index opened at 16,890 pts.
After setting its foothold at the 16,874 pts day’s low, it climbed to the 17,264 pts day’s high and closed at 17,079 pts.
In the evening, it pulled back 17 pts and last traded at 17,062 pts.
The latest positive price action suggests the bullish momentum is gaining traction again.
The bulls may attempt to cross above the 20-day SMA line.
Meanwhile, expect a strong resistance to emerge at the 17,500-pt level.
In a bearish setup, resistance will be strong.
The 20- and 50-day SMA lines are still trending lower, giving downward pressure on the index.
As long as the HSIF stays below the 17,500-pt threshold, it is highly possible that it will resume the downside movement.
Despite the index undergoing positive price action, they will stick to the negative trading bias.
They advised traders to retain the short positions initiated at 18,126 pts or the close of 30 May.
To manage the trading risks, the stop-loss threshold is fixed at 17,500 pts.
The first support locates at 16,500 pts, followed by 16,000 pts.
On the upside, the immediate resistance is pegged at 17,500 pts, followed by 18,000 p
