RHB Investment Bank Bhd has advised traders to maintain short positions on the Hang Seng Index Futures (HSIF), as the index continues to trade below both the 20-day and 50-day simple moving average (SMA) lines.
Despite a mild rebound on Tuesday, where the HSIF added 84 points to close at 19,690 points, bearish momentum remains strong.
The index opened at 19,610 points, reached a high of 19,793 points during the day, but ended the session at 19,690 points. Evening trading saw it decline by 71 points to last trade at 19,619 points.
RHB Research highlighted that the 20-day SMA line is turning lower, signalling further downside pressure. This suggests that, after the current consolidation phase, the HSIF could resume its downward trajectory, potentially testing the 19,000-point support level.
The research house recommends holding short positions initiated on 9 October at 20,628 points, maintaining a stop-loss threshold at 21,250 points to mitigate risks.
Key support levels are identified at 19,000 points, with a deeper level at 18,000 points. On the upside, resistance is pegged at 20,000 points, followed by the critical 21,250-point threshold.
RHB Research maintains a negative trading bias, expecting the bearish setup to persist as long as the index remains below the SMA lines.
