The HSIF failed to extend its technical rebound yesterday, as the 20-day SMA line resistance level proved to be too strong.
RHB Retail Research (RHB) in a note today (July 24) said the index began trading at 17,663 pts.
After touching the 17,775-pt intraday high, it reversed to the 17,458-pt intraday low.
It closed at 17,501 pts. In the evening, it was last seen at 17,516 pts.
The latest bearish candlestick, coupled with the downtrending RSI, shows that bearish momentum is gaining traction.
On the upside, the 20-day SMA line remains the overhead resistance level, and is putting downward pressure on the index.
As long as the index stays below the short-term moving average line, it is likely to resume downward movement towards the 17,000-pt support level.
Given the bearish momentum, they held on to the negative trading bias.
RHB noted that 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 marked at 17,000 pts, followed by 16,000 pts.
On the upside, the immediate resistance is still pegged at 18,000 pts, followed by 18,500 pts.