The HSIF recorded a smaller gain of 116 pts on Wednesday to close at 19,201 pts, as profit-taking activities took place.
RHB Retail Research (RHB) in a note today (Sept 26) said yesterday, it opened at 19,088 pts, and rose to the day’s high of 19,767 pts before ceding the bulk of intraday gains and closing.
In the evening, it added 135 pts and last traded at 19,336 pts.
Despite charting a candlestick with a “long upper shadow”, the index still closed above both the 20- and 50-day SMA lines.
The bulls still have the technical advantage, as the index is trading above the moving average lines.
In the event selling pressure intensifies, the HSIF may undergo a retracement and find support at the 18,500-pt level.
In a bullish setup, support tends to be strong.
At this stage, the technical setup remains bullish, so RHB said they will maintain a positive trading bias.
Additionally, RHB said traders should stick to the long positions initiated at the close of 19 Sep (18,059 pts).
To manage the trading risks, the stop-loss threshold has been adjusted higher to 18,500 pts, from 18,000 pts.
The immediate support is marked at 18,500 pts, followed by the lower support level of 18,000 pts.
Meanwhile, the immediate resistance is pegged at 20,000 pts, followed by 21,000 pts.
