RHB Investment Bank Bhd (RHB Research) has advised traders to maintain short positions on the Hang Seng Index Futures (HSIF), citing persistent bearish momentum and downward pressure.
On Tuesday, the HSIF faced selling pressure but managed to bounce off the 19,000-point support level, closing at 19,165 points. The index opened at 19,134 points, fluctuating between a high of 19,313 points and a low of 18,964 points before ending the day marginally higher. In evening trade, it gained 7 points, last trading at 19,172 points.
Despite the marginal recovery, RHB Research noted that the index has yet to form a bullish reversal candlestick, with the Relative Strength Index (RSI) still below the 50% threshold, indicating ongoing negative momentum. The 20-day Simple Moving Average (SMA) continues to slope downwards, further exerting bearish pressure on the index.
RHB Research anticipates a potential bearish breakout below the critical 19,000-point support level, which could lead to a retracement towards 18,000 points. However, if positive momentum builds, the HSIF may test the immediate resistance at 20,000 points, with the next resistance at 21,250 points.
Traders are advised to maintain their short positions initiated on 9 October at 20,628 points. The stop-loss remains set at 21,250 points to manage trading risks
