RHB Investment Bank Bhd (RHB Research) has recommended maintaining short positions on the Hang Seng Index Futures (HSIF) as its attempt to breach the 21,250-point resistance level failed. The index retreated from an intraday high of 21,385 points to close at 20,436 points on Tuesday.

The session began positively, with the HSIF opening at 20,654 points and climbing to the day's high before reversing course in the afternoon. The index hit a low of 20,367 points before the close. During the evening session, it dipped by 1 point, ending at 20,435 points.

According to RHB Research, this price action reaffirms the strength of the 21,250-point resistance and indicates the bearish trend remains intact. Should the index close below the critical support at 20,000 points, market sentiment is expected to deteriorate, potentially resuming the downtrend.

The research house highlighted that both the 50-day and 20-day simple moving average (SMA) lines are currently acting as support. However, it noted that these supports are typically weak in a bearish setup.

Traders are advised to maintain short positions initiated on Oct 9 at 20,628 points, with a stop-loss threshold set at 21,250 points.

The immediate support levels are set at 20,000 points and 19,000 points. On the upside, resistance is pegged at 21,250 points, followed by a higher level of 23,000 points.