The HSIF extended the correction on Tuesday's session, declining 314 pts to close at 17,745 pts.
RHB Retail Research (RHB) in a note today (July 17) said yesterday, the index opened at 18,061 pts.
It then progressed lower throughout the session, hitting the day's low of 17,733 pts before closing.
The latest bearish candlestick closed below the 20-day SMA line, which shows that the bears are picking up momentum.
Meanwhile, the RSI is falling below the 50% threshold, which further underscores the bearish pressure.
A follow-through negative price action may lead to the index pulling back towards 17,500 pts.
Breaching the immediate support will strengthen the bearish technical setup – so we continue to have a negative trading bias.
RHB noted that traders should stick to the short positions initiated at the close of 30 May (18,126 pts).
To manage the trading risks, the stop-loss is placed at 18,500 pts.
The nearest support is at 17,500 pts, followed by 17,000 pts.
Towards the upside, the nearest resistance is still pegged at 18,500 pts, followed by 19,000 pts.