RHB Investment Bank Bhd (RHB Research) has reiterated its bearish stance on the Hang Seng Index Futures (HSIF), advising traders to maintain short positions as the index continues to reflect a bearish technical setup.
On Wednesday, the HSIF extended its positive movement, gaining 24 points to close at 19,714 points. It opened at 19,681 points and fluctuated between 19,779 points and 19,414 points during the session before settling at 19,714 points. However, in the evening session, it shed 97 points, last trading at 19,617 points.
Despite a "higher high" closing, which indicates improving bullish momentum, the index remains below the critical 20,000-point resistance level and the 50-day simple moving average (SMA) line. The continued downward trajectory of the 20-day SMA line underlines the bearish short-term trend.
RHB Research anticipates the index will likely resume its downward movement in the near term. The research house emphasised that traders should retain short positions initiated at the close of 9 October, when the index stood at 20,628 points. The stop-loss level remains at 21,250 points to manage potential risks.
Key support levels are identified at 19,000 points and 18,000 points, while immediate resistance levels are set at 20,000 points and a higher resistance at 21,250 points.
RHB Research's analysis suggests that bearish sentiment still dominates, as technical indicators favour the bears despite occasional upward movements.
