The HSIF staged a bearish breakout on Friday, falling to close at 17,437 pts.
RHB Retail Research (RHB) in a note today (July 22) said the index began Friday's session at 17,809 pts.
After touching the day's high of 17,822 pts, it moved lower throughout the session, hitting the 17,379-pt low.
It then closed at 17,437 pts (below the 17,500-pt support level).
At the time of writing, the index was last traded at 17,425 pts.
The latest bearish candlestick reaffirmed that the bears are in control.
As mentioned in our previous report, as long as the index stays below the 20-day SMA line, the bears will have the upper hand, and a bearish breakout is likely.
Based on the bearish momentum, the index may pull back towards 17,000 pts, followed by 16,000 pts.
If the index stages a technical rebound, the 18,000-pt level will act as the psychological resistance.
As bearish momentum is gaining pace, they hold on to their negative trading bias.
Traders should retain the short positions initiated at the close of 30 May (18,126 pts).
To manage the trading risks, the stop-loss is set at 18,500 pts.
The immediate support is revised lower to 17,000 pts, followed by 16,000 pts, while the immediate resistance is pegged at 18,000 pts, followed by 18,500 pts.