The HSIF has crossed above the 20- and 50-day SMA lines to close stronger at 18,366 pts – eyeing to extend the upside movement.
RHB Retail Research (RHB) in a note today (July 15) said last Friday, the index stared trading at 17,856 pts, then rose to the day's high at 18,380 pts before the close – charting a fresh "higher high" bullish candlestick.
In the evening, the index pulled back 101 pts and last traded at 18,265 pts.
The latest price action shows that the bulls have gained the technical advantage after the index closed above both moving average lines.
Also, as the RSI is rounding upwards, this suggests that a positive price action may follow through in the immediate session.
In the event the index breaches the 18,500-pt resistance, this will improve the technical setup.
Pending the bullish breakout, they still hold on to the negative trading bias.
RHB noted that traders should keep to 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 17,500 pts, followed by 17,000 pts.
Conversely, the immediate resistance is pegged at 18,500 pts, followed by 19,000 pts.