The HSIF experienced strong selling pressure on Wednesday, retreating 204 pts to close at 17,709 pts.
RHB Retail Research (RHB) in a note today (Aug 29) said it started the session at 17,910 pts.
After touching the 17,934-pt intraday high, it underwent a correction, hitting the 17,662-pt intraday low before the close.
At the time of writing, it was last traded at 17,731 pts.
The latest bearish price action shows that the index resorted to consolidation below the 18,000-pt resistance level.
As the RSI is rounding downwards, it is likely that the index will move sideways along the 50-day SMA line.
The bulls still have the technical advantage as the HSIF is trading above both the 50-day and 20-day SMA lines.
Meanwhile, the 20-day SMA line is moving upwards, providing additional support for the technical setup.
RHB said they raised the stop-loss point higher while maintaining the bullish trading bias.
They advised traders to retain the long positions initiated at 17,608 pts (the close of 19 Aug).
To minimise the trading risks, RHB said the stop-loss is revised higher to 17,250 pts from 17,000 pts.
The nearest support is revised higher to 17,250 pts, followed by 17,000 pts.
Conversely, the immediate resistance is still pegged at 18,000 pts, followed by 18,500 pts.