The HSIF shed 26 pts on Friday to close at 17,635 pts after facing mild selling pressure.
RHB Retail Research (RHB) in a note today (Aug 26) said that the index opened at 17,661 pts, then bounced from the intraday low of 17,445 pts intraday low before closing.
In the evening, it rose 98 pts and last traded at 17,733 pts.
The latest price action saw the index continuing to trade above the 50-day SMA line, showing that the bulls still have the technical advantage.
Meanwhile, the 20-day SMA line is curving upwards, indicating that the short-term trend is turning bullish.
The RSI is trending higher, which also suggests that the positive price action should follow through in the coming sessions.
In the event the index breaches the 18,000-pt resistance, this will improve the technical setup.
For now, this setup remains bullish – so RHB maintained their positive trading bias.
Additionally, RHB recommended that traders stick to the long positions initiated at 17,608 pts (the close of 19 Aug).
To manage the trading risks, the stop-loss is set at 17,000 pts.
The nearest support is still at 17,000 pts, followed by 16,500 pts.
Towards the upside, the nearest resistance is at 18,000 pts, followed by 18,500 pts.
