The HSIF's bullish momentum took a breather on Monday.
RHB Retail Research (RHB) said in a note today (Aug 13) moreover, the index has yet to cross above the 20-day SMA line resistance.
Yesterday, the index opened at 17,079 pts.
After whipsawing between 17,167 pts and 16,975 pts, it closed at 17,077 pts with a Doji candle.
At time of writing, the index added 17 pts and last traded at 17,094 pts.
As mentioned in the previous note, the bears will still have the upperhand should the index continue to trade below the 20-day SMA line.
Observe that the short-term moving average line carries on trending lower, adding selling pressure to the index.
In the event the index breaches the 16,500-pt support, this will open the door for further correction.
Meanwhile, since the technical setup remains bearish, expect a strong resistance to exist at the 17,500-pt level.
For now, they hold on to their negative trading bias.
They recommended traders to stay on the short positions initiated at 18,126 pts, or the close of 30 May.
To minimise the trading risks, the stop-loss is placed at 17,500 pts.
The nearest support is marked at 16,500 pts, followed by 16,000 pts.
Towards the upside, the immediate resistance remains unchanged at 17,500 pts, followed by 18,000 pts.