The HSIF climbed on Tuesday to close higher at 17,674 pts – eyeing to cross above the 17,700-pt resistance.

RHB Retail Research (RHB) in a note today (Sept 19) said the index initially started trading at 17,450 pts.

It then rose to the 17,744-pt day high before closing at 17,674 pts.

This latest session saw the HSIF managing to surpass the 20-day SMA line.

At this juncture, both the 50- and 20-day SMA lines are acting as downside supports.

The bulls will have the technical advantage should the index stay above both moving average lines.

However, strong selling pressure is expected to emerge at 18,000 pts.

Despite the HSIF undergoing a strong rebound, they remained on the negative trading bias until the 18,000-pt resistance is breached.

RHB advised traders to hold on the short positions initiated at the close of 9 Sep or 17,154 pts.

To manage the trading risks, the stop-loss threshold is set at the abovementioned 18,000 pts.

The nearest support is marked at 17,000 pts and followed by the 16,500-pt mark.

On the flipside, the nearest resistance is at 17,700 pts and followed by 18,000 pts.