The HSIF's upside movement was capped by the 50-day SMA line, and it retraced by 307 pts and closed lower at 18,059 pts.
RHB Retail Research (RHB) in a note today (July 16) said yesterday, the index opened at 18,368 pts, rose to print the day's high of 18,424 pts before market sentiment shifted in the afternoon – whereupon the HSIF retreated to the day's low of 17,966 pts before the close.
In the evening, the index declined 179 pts further and last traded at 17,880 pts.
The latest price action reaffirms that the 50-day SMA line is acting as a resistance point.
In the event the index falls below the 20-day SMA line, the bears will grow stronger.
Towards the upside, expect strong selling pressure to emerge at 18,500 pts.
The bearish structure should be intact as long as the index stays below the 18,500-pt level.
For now, they made no change to their negative trading bias.
RHB also noted that traders are recommended to hold on to the short positions initiated at the close of 30 May (18,126 pts).
To minimise the trading risks, the stop-loss is set at 18,500 pts.
The nearest support is located at 17,500 pts, followed by 17,000 pts.
Towards the upside, the nearest resistance is still at 18,500 pts, followed by 19,000 pts.