RHB Investment Bank Bhd (RHB Research) advises maintaining short positions on the Hang Seng Index Futures (HSIF) as the index fell 366 points, closing at 19,441 points on Thursday.
The HSIF started the day at 19,816 points, reached a high of 19,976 points, then reversed sharply to a low of 19,390 points before settling at 19,441 points.
An evening session saw the index recoup 23 points, last trading at 19,464 points.
The latest session closed with a new "lower low," confirming that the correction phase continues, as indicated by the downward-trending Relative Strength Index (RSI).
The bearish momentum suggests the index may test the key support at 19,000 points, which could be followed by further downside towards 18,000 points if the correction persists.
Both the 20-day and 50-day Simple Moving Averages (SMA) are now acting as resistance, underscoring the prevailing bearish technical outlook.
RHB Research recommends holding on to short positions initiated on 9 October at 20,628 points. To manage trading risks, the stop-loss is set at 21,250 points.The immediate support levels are pegged at 19,000 points and 18,000 points, while resistance is seen at 20,000 points, followed by 21,250 points.
