The Hang Seng Index Futures (HSIF) posted a significant gain on Thursday, climbing 449 points to close at 21,062 points, after starting the session at 20,616 points. Despite an initial intraday low of 20,219 points, the HSIF reversed course, reaching a daily high of 21,073 points before closing strongly. Additional evening trades saw the index rise by another 239 points, with last trades recorded at 21,301 points.

RHB Investment Bank Bhd (RHB Research) observed that this price action signals improved market sentiment, as the index is now trading above its 20-day Simple Moving Average (SMA). The Relative Strength Index (RSI) also shows upward movement, suggesting that bullish momentum is gaining strength. However, RHB Research advises caution, as the HSIF has not yet closed above the immediate resistance level of 21,250 points. Breaking this level could weaken the bearish Marubozu pattern that emerged on 8 October, though a negative trading bias remains intact.

In line with this outlook, RHB Research recommends that traders maintain their short positions, initially set on 9 October at 20,628 points. The stop-loss level is now adjusted to 21,250 points from 22,000 points to manage trading risks.

Support for the HSIF is first positioned at 20,000 points, with a lower level at 19,000 points. On the upside, resistance is anticipated at 21,250 points, followed by a further level at 22,000 points.