The HSIF continued its sideways movement yesterday, falling 158 pts to close at 17,375 pts.
RHB Retail Research (RHB) in a note today (Aug 22) said the index started the session at 17,533 pts.
It then pulled back towards the day's low at 17,251 pts before closing at 17,375 pts.
During the evening session, the HSIF rebounded and climbed 139 pts to retest the 50-day SMA line.
The index was last traded at 17,514 pts.
RHB said they observed the RSI has climbed above the 50% threshold, suggesting the bullish momentum is still in play.
In the event the index climbs above the 50-day SMA line, the bullish technical setup will be improved.
On the downside, the 20-day SMA line still acts as support for the index.
Despite the index undergoing consolidation, they held on to the positive trading bias.
They advised traders to hold on the long positions initiated at 17,608 pts or the close of 19 Aug.
To minimise the trading risks, the stop-loss threshold is placed at 17,000 pts.
The immediate support locates at 17,000 pts, followed by the 16,500-pt level.
Conversely, the immediate resistance is pegged at 18,000 pts, followed by the higher resistance at 18,500 pts.
